Germany Exports More to Poland than to China

In the background of Western countries actively seeking to reduce their trade dependency on China, an analysis released on Friday, August 16, revealed that German exporters have successfully diversified their markets: in the first half of this year, Germany’s exports to Poland exceeded those to China.

According to Reuters, data from Germany’s Committee on Eastern European Economic Relations showed that in the first six months of this year, Germany’s goods exports to Poland increased by 4.6% to reach 484 billion euros (532 billion US dollars). In comparison, based on preliminary data from the German Federal Statistical Office, exports to China decreased by 2.7% to 482 billion euros compared to the same period last year. This shift has positioned Poland as Germany’s fourth-largest export market, while China slipped to fifth place.

Cathrina Claas-Muehlhaeuser, the Chairwoman of Germany’s Committee on Eastern European Economic Relations, stated that this achievement of market diversification is a tremendous success for the German economy, which is in dire need of it to reduce reliance on China.

She told Reuters that this should serve as a driving force for the new European Commission and candidate countries to continue expanding decisively eastward and southeastward without delay.

Data shows that in the first half of this year, the United States remained Germany’s largest export market, followed by France and the Netherlands. During the same period, despite an overall contraction in Germany’s total exports, exports to Eastern Europe saw a slight increase, reaching 1.45 trillion euros.

Claas-Muehlhaeuser mentioned that Eastern European countries account for nearly 19% of Germany’s foreign trade and have become a pillar of Germany’s export-oriented economy.

For a long time, major exporters in industries such as industrial products and automobiles have been the backbone of Germany’s economy, bringing in a robust trade surplus for the country. However, recent tensions between the Chinese Communist Party and the West have prompted a shift in Germany’s export strategy.

Following the outbreak of the Russia-Ukraine conflict, China’s support for Russia led to a sharp decline in EU-China relations. Furthermore, China has employed economic coercion tactics to threaten EU countries like Lithuania, leading to discontent within the EU. The EU has put forward a “de-risking” strategy towards China.

In May last year, the Group of Seven (G7) leaders, including Germany, issued a joint communique at the G7 summit, expressing the need to de-risk economically and diversify supply chains to reduce excessive reliance on China in critical supply chain areas.