Imports to Germany collapse in the corona pandemic. The import of goods from China is still reaching new record highs, especially the demand for masks and other medical products is covered by Germany with Chinese imports. This could become a problem in the long run.
The dependence of the German economy on imports from China will skyrocket in the Corona year 2020 to a record high. From January to September, the share of total imports grew to a good 11.3 percent, according to data from the Federal Statistical Office. The previous record was reached in 2019 when a good 9.9 percent of goods deliveries came from the People's Republic for the year as a whole. In the first nine months of 2020, imports from China went against the trend by more than five percent to 85.2 billion euros.
In contrast, total German imports fell by 9.3 percent to 751.1 billion euros due to weaker demand due to the Corona recession. "The increase in imports from China is due, on the one hand, to increased demand for medical equipment that was and is needed in the course of fighting the pandemic," said the chief economist of the Mercator Institute for China Studies, Max Zenglein. "Another major reason is the increased need for electronics because so many employees have switched to the home office."
The expert does not yet see a problem in this development. "Disruptions in global supply chains pose challenges for every company, but overall, Germany's dependence on goods deliveries from China is rather low," said Zenglein. There are exceptions – for example with some intermediate products such as pharmaceutical preliminary products or electronic components. But mainly consumer goods and electronics are imported.
Nevertheless, the expert advises the federal government to keep an eye on the development of business in China. "Given the growing political risks that global supply chains are exposed to, it is advisable to have a vigilant monitoring of potential vulnerabilities," said Zenglein. This includes the classification of goods that are particularly important for industry, safety and healthcare. "Particularly for these critical goods, it is imperative to work towards diversification of the supply chain."
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