The real test is not whether Germany understands its dependence on China, but whether it acts on that understanding before the next shock arrives. Image: AP
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Firstpost27-01-2026, 18:54

Germany Grapples with China Dependence: Acknowledges Risk, Delays Action

  • Germany forms an expert commission to assess its economic dependence on China, a move seen as overdue given long-standing warnings.
  • The commission's broad mandate includes evaluating risks to critical infrastructure, supply chains, and recommending policy responses.
  • Concerns are raised that the commission's creation might lead to delayed action, similar to Germany's past energy dependence on Russia.
  • Chinese state-subsidized competition is impacting German industries, from automobiles to green technologies, posing a significant challenge.
  • India's decisive response to its own China dependence post-2020 border crisis offers a contrasting model of swift action.

Why It Matters: Germany recognizes its deep economic reliance on China but risks delaying crucial action, mirroring past mistakes with Russia.

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