China's Industrial Rise Squeezes German Firms Out of Global Markets

The European Central Bank (ECB) has reported that China's industrial transformation is pushing European firms out of global markets, particularly in machinery and transport equipment. The EU's share of global goods exports has declined most in sectors where China has expanded its presence.

The losses have been most visible in Germany, which has seen its export mix overlap significantly with China's. Italy, on the other hand, has the least similar export mix to China.

As China's domestic production expands, it is buying fewer products from Europe, with the decline being most pronounced in economies closely integrated into European manufacturing and automotive supply chains, including Germany and several central European countries.