Direct imports from China for lithium-ion batteries accounted for about two-thirds last year, up from roughly one-half two years earlier, with solar panels and antibiotics also showing rising shares of Chinese input.

Germany’s reliance on China for key goods and raw materials is growing, according to a study citing preliminary official data.

The study notes increases in imports from China in metals such as magnesium, gallium, and germanium, and underscores that China remains the dominant supplier of certain rare earth elements essential for permanent magnets in electric motors.

Experts warn that without stronger protection against state-supported Chinese exports, Germany risks deindustrialization and factory closures, urging coordinated European action on China’s currency policies and export model.

German Economics Minister Katharina Reiche is set to visit China, signaling ongoing policy engagement on reducing dependency.

Chancellor Olaf Scholz’s administration highlights the visit as context for policy discussions, with industry calling for fair competition and a firm stance against trade distortions.

Ahead of Reiche’s visit, discussions are expected to explore cooperation while maintaining dialogue, focusing on reducing reliance and ensuring balanced trade.

The study’s author warns Germany is not diversifying in critical areas and is becoming more vulnerable, referencing the 2023 China strategy aimed at reducing dependencies.

The findings reiterate Germany’s 2023 China strategy to cut economic dependencies on China and improve strategic resilience.

Overall, Germany remains less diversified in critical sectors, increasing exposure to Chinese supply chains across key industries.

China is Germany’s largest trading partner, with imports from China rising while exports to China decline, applying pressure on automotive, mechanical engineering, chemistry, and aerospace sectors.

The analysis covers only direct imports from China, excluding shipments via third countries that pass through Chinese inputs.