Once dominant, Germany is now desperate

One crucial development, according to Sander Tordoir of the Centre for European Reform (CER) , a think-tank, is the changing relationship with China. In the 2000s and 2010s Germany was perfectly placed to satisfy Chinese appetites for its cars, chemicals and precision-engineered widgets: goods exports to China rose by 34% between 2015 and 2020, even as those to other countries fell. As recently as 2020 China was a net importer of cars but last year it became the world’s largest exporter. Chinese firms are morphing from customers to competitors, coming to eat the lunch not only of the German auto industry but also of the Mittelstand. “The car story is emblematic, but it’s also about machines and chemicals,” says Mr Tordoir.