Part 5/9:
Traditionally, Germany's economic vitality depended heavily on strong trade relations with China and Asian markets. China alone last year imported over $101 billion worth of German goods—including cars, chemicals, and medical equipment. However, Germany's pivot away from China over recent years has introduced new vulnerabilities.
As China’s influence wanes and Germany seeks to diversify trade, its industries are strained by increased costs and geopolitical tensions. The reliance on Asian markets previously buffered certain structural issues, but these are now becoming more acute.