German Investment Guarantees in China Plummet, Deepening Crisis and Increasing Pressure on Supply Chain

The volume of investment guarantees provided by the German government to companies investing in China has significantly decreased this year, reflecting Berlin's efforts to reduce reliance on the country. Only 51.9 million euros in guarantees have been issued so far in 2023, compared to 745.9 million euros issued in 2022. Germany's new China strategy aims to address security risks associated with investments in China, as slowing growth and concerns over advanced Chinese manufacturing threaten Germany's economic model. The decline in investment guarantees and lower export volumes to China indicate a shift in Germany's economic relationship with the country.