Financial expert warns: German companies are adapting China strategies and preparing for emergencies in order to secure supply chains.

Financial expert warns: German companies are adapting China strategies and preparing for emergencies in order to secure supply chains.

According to a report from www.tagesschau.de, German entrepreneurs are increasingly worried about their China business. Thomas Nürnberger, responsible for the China business at ebm-papst, is introducing a program called “Decoupling China” in order to be able to react quickly in an emergency. The federal government published a strategy paper on China in July in which it explained that dependencies should be avoided, even though China is Germany's most important trading partner.

These developments show that German companies are forced to adapt their business strategies due to geopolitical conflicts. The recent moves by companies like ebm-papst to decouple from China could have an impact on the market and the financial industry. ebm-papst's investments in China and the efforts of other medium-sized companies indicate a shift in global supply chains. This could lead to German companies reducing their dependence on China and focusing more on new supply chains. However, this step could also lead to competitive disadvantages as manufacturing in Europe could initially be more expensive.

Overall, current developments could lead to increased economic independence from China, which could be accelerated by government funding and political support. But it remains to be seen whether European production will be competitive in the long term. The switch to “Made in Germany” and the development of products from domestic materials could lead to a turning point in dependence on China in the long term, but will only be realized in eight to ten years. The current German economy remains heavily dependent on China for the time being.