Trade crisis with China: Will the USA become Germany's new most important trading partner?

Trade crisis with China: Will the USA become Germany's new most important trading partner?

According to a report from www.capital.de,

In view of current developments, a change in the world trade order could be on the horizon, as the USA could soon replace China as Germany's most important trading partner. This could not only reduce economic dependence on China, but also impact the struggling German economy. Despite the interdependence between Germany and China, there is a declining trade volume due to falling demand for German goods in China and Chinese goods in Germany.

The Chinese economy is suffering from deflation, which reduces investment and consumption incentives and inhibits growth. Persistent deflation and weak stock markets point to weak household and private sector demand, posing significant risks to China's growth prospects. This development could in turn impact global trade and exacerbate trade tensions.

The USA, as Germany's second most important trading partner, could benefit from this and replace China as the most important trading partner. By building manufacturing capacity in the US, they could meet demand from Europe. The USA could thus establish itself as Germany's largest trading partner. These changes could have a lasting impact on the global economy and foreign trade.

The German economy must prepare for this possible shift and reduce dependencies by establishing new trading partnerships and diversifying its economy. It remains to be seen how the international trade order will develop in the next few years and what impact this will have on the economy.