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Germany's Industry Faces Crisis Amidst Declining Exports to China

2/18/2026

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Story summary
  • Chancellor Friedrich Merz warns that Germany's industry faces intensified competition from China as exports to China have fallen by two-thirds since 2022.
  • The Rhodium Group warns of a structural decline in trade unless Germany finds alternative markets.
  • EU leaders push tougher policies, including a 'Buy European' initiative, to counter unfair Chinese competition.
  • Economists compare Germany's situation to Detroit's decline in the U.S. car industry.