DW Berlin Briefing - Inside German politics How the tables are turning between Germany and China
Feb 27, 2026
Torsten Benner, director at GPPi and geopolitics expert, explains the rising 'China shock' facing Germany. He discusses supply‑chain dependence, competition in key industries, and the limits of de‑risking. Short takes cover trade imbalances, Merz’s China visit outcomes, Airbus deals, and whether Germany and Europe can build economic security to counter strategic dependencies.
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Car Industry Is Germany's Economic Barometer
- Germany's economic stability is measured by its car industry performance and reform momentum.
- Friedrich Merz went to China primarily to try to stabilise German carmakers facing collapsing market share and falling prestige in China.
Two Part China Shock Threatens German Core Industries
- The China shock is twofold: dangerous supply dependencies and China moving up the value chain to compete with core German industries.
- Thorsten Benner warns chemicals, automotive and machine tools face existential competition aided by subsidies and an undervalued currency.
Robotics Visit Reversed The IP Narrative
- Michaela describes visiting a Chinese robotics firm where engineers insisted journalists stop filming.
- The company feared German journalists would steal IP, flipping the old narrative of German worry about Chinese copying.