Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/57989 
Authors: 
Year of Publication: 
2012
Citation: 
[Journal:] DIW Economic Bulletin [ISSN:] 2192-7219 [Volume:] 2 [Issue:] 3 [Publisher:] Deutsches Institut für Wirtschaftsforschung (DIW) [Place:] Berlin [Year:] 2012 [Pages:] 27-31
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Economic relations between Germany and China have developed exceptionally well over the past few decades. China has grown to become one of Germany's key trading partners and may even become the second-largest trading partner after France in the coming year. And yet China's focus is increasingly shifting towards capital goods manufacturing, meaning Chinese enterprises will be competing with German enterprises more strongly on global markets. There are more and more indications that the extensive direct and indirect subsidizing of businesses in China is a major contributory factor to cut-throat competition, which is becoming increasingly incompatible with the concept of free trading within the WTO regulatory framework. Recent examples of this can be found, in particular, in the manufacture of wind turbines, photovoltaic installations, and, more recently, even high-speed trains, as well as the exploitation of China's quasi-monopoly on rare earths. In other high-tech sectors, too, the competition is likely to become fiercer. What is needed, therefore, is forward-looking industrial, innovation and trade policy that does not create major distortions of competition in Germany's economic relations with China.
Subjects: 
Germany
China
economic relations
trade and foreign direct investments
JEL: 
F14
F59
L16
Document Type: 
Article

Files in This Item:
File
Size
228.68 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.