(MENAFN) In an interview with the Financial Times on Sunday, the chief financial officer of Siemens, Ralf Thomas, emphasized that German businesses would require decades to reduce their reliance on imports from China. Thomas's comments come amid discussions surrounding Germany's strategy to "de-risk" its economic dependence on China, which was initiated last year by policymakers in Berlin.
Despite efforts to diversify to other markets, a recent study by the German Economic Institute revealed that German manufacturers remain highly dependent on China for various products and raw materials. Thomas highlighted the complexity of global value chains, which have been established over the past 50 years, suggesting that significant changes cannot be achieved within a short timeframe of six to 12 months.
Thomas's remarks coincide with German Chancellor Olaf Scholz's high-profile visit to China, aimed at strengthening economic relations amidst escalating tensions between Western countries and Beijing over trade and geopolitical issues. While Germany seeks to enhance trade with China, officials emphasize the importance of addressing critical dependencies and achieving balanced partnerships.
According to German government sources cited by the FT, the intention is not to reduce trade with China but to expand it while considering the need for de-risking and diversification. China remains Germany's largest economic partner, with bilateral trade reaching EUR254 billion (USD269.8 billion) last year, highlighting the significance of maintaining robust economic relations between the two nations.
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