Germany is the epicentre of the China Shock 2.0 reverberating in global markets (opens in new tab)

Germany is the epicentre of the China Shock 2.0 reverberating in global markets In a new paper, @Brad_Setser and I show the shock is a key driver of Germany’s economic malaise. And it's accelerating Berlin needs to stop admiring the problem, and join efforts to fight back 1/ China’s exploding exports are squeezing German firms in cars, machinery, chemicals and aerospace in China, third markets and increasingly Europe itself. The drag from falling net exports has accelerated sharply since 2023...