ISTANBUL
China is steadily gaining ground in European Union markets at the expense of German exporters, according to a report released Monday by the KfW Development Bank.
The report highlighted that the export profiles of Germany and China have been converging over the past decade, particularly in key sectors such as automotive, mechanical engineering, and chemical products.
Chinese manufacturers are continuing to increase their market share over German exporters in Europe over the past 12 years, gradually increasing economic competition between Germany and China in EU markets.
"While Germany is losing export shares, China is making gains. In addition, the export profiles of both countries have been converging for years. They are competing in more and more product categories,” the report said.
Although Germany remains the leading exporter to other EU countries, its dominance is gradually eroding.
In 2012, Germany accounted for 33% of EU imports, but by 2024, that figure had dropped to 29%. During the same period, China's share increased from 1% to 4%.
Overall, goods exported from Germany to other EU countries amounted to around 54% of its total exports, while China exported 11% to the EU in 2024.
"Various surveys among German enterprises have revealed that most of them expect the rivalry to further intensify with Chinese businesses," the report added.
The study also noted a shift in China’s export structure, particularly with a declining share of labor-intensive goods. The share of domestically assembled items in China’s total exports fell from 55% in 2001 to just 20% in 2024.
“China is working to export its own excess capacity,” said KfW Chief Economist Dirk Schumacher. “In this effort, Europe is now moving more into the focus of the People’s Republic because the conditions for selling in the US are rapidly deteriorating,” he added.
“It is critical for Germany to create a favorable business environment and make the economy competitive in order to respond to growing competitive pressure from China as well as from other countries," Schumacher said.