German Companies Should Reduce Their High Dependence On China

German Companies Should Reduce Their High Dependence On China

German companies should start to focus more on other Asian markets and reduce their high dependence on China. This was stated by the German Minister of Economy Peter Altmaier, who pointed to the situation during the most critical period of the new coronavirus pandemic, when Germany had a problem with the supply of the necessary products from the Chinese market. Trade between China and Germany has grown rapidly in recent years, and China has become Germany's most important supplier outside the European Union and its second largest export market. However, Altmaier said at the conference for entrepreneurs that it was the pandemic of the new coronavirus that pointed to the problem of a strong focus on specific markets, which creates too high dependence. In particular, he encountered problems with the supply of medical supplies to the German market in the spring months, when China was struggling with the biggest problems due to the spread of the new coronavirus. That is why, according to the Minister, it is necessary to diversify supply networks. He added that Singapore and South Korea offer promising opportunities. They managed the crisis quite well and in a short time their economies managed to get out of the worst. German Chancellor Angela Merkel also called on the German company to diversify at the conference. According to her, they should look more at other markets in the Asia-Pacific region. At present, about 75 percent of total German exports to the Asian market go to East Asia, half of which goes to China, Merkel added.