IW: dependence on China – ‘full steam ahead in the wrong direction’

Despite the debate about Germany’s economic dependence on China, the trend actually intensified in the first half of the year. “German direct investment flows to China have never been so high,” according to a study by the Institute of the German Economy (IW), which was obtained by Reuters. Imports from the People’s Republic and Germany’s trade deficit with the country reportedly also reached record levels. According to the economists, the Chinese market is apparently to be served more and more by local production instead of exports.

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