German-Chinese Economic Relations: Opportunities and Risks
AbstractEconomic relations between Germany and China have developed exceptionally well over the past few decades. China has grown to become one of Germany's key trading partners and may even become the second-largest trading partner after France in the coming year. And yet China's focus is increasingly shifting towards capital goods manufacturing, meaning Chinese enterprises will be competing with German enterprises more strongly on global markets. There are more and more indications that the extensive direct and indirect subsidizing of businesses in China is a major contributory factor to cut-throat competition, which is becoming increasingly incompatible with the concept of free trading within the WTO regulatory framework. Recent examples of this can be found, in particular, in the manufacture of wind turbines, photovoltaic installations, and, more recently, even high-speed trains, as well as the exploitation of China's quasi-monopoly on rare earths. In other high-tech sectors, too, the competition is likely to become fiercer. What is needed, therefore, is forward-looking industrial, innovation and trade policy that does not create major distortions of competition in Germany's economic relations with China.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by DIW Berlin, German Institute for Economic Research in its journal DIW Economic Bulletin.
Volume (Year): 2 (2012)
Issue (Month): 3 ()
Germany; China; economic relations; trade and foreign direct investments;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.