Overview

• A KfW study confirms that Chinese exporters have steadily gained market share in automotive, machinery, and chemical sectors across the EU since 2012, while German exports in these areas have declined.
• German companies fear U.S. tariffs on Chinese goods will redirect a surge of competitively priced Chinese products into European markets, heightening competition.
• China has increased its focus on the EU market, which accounted for only 11% of its exports, as access to the U.S. market weakens.
• Over half of Germany's exports (54%) are destined for EU countries, making this market critical for its economy and heightening the stakes of Chinese competition.
• Surveys indicate that most German businesses expect competition with Chinese exporters to intensify, prompting firms to prepare strategic responses.