BERLIN: German exports to China will fall by 2 percent this year after rising by 11 percent in 2014, the head of the DIHK Chambers of Commerce said in an interview published on Thursday, as a slowdown in the world’s second biggest economy takes its toll.
Germany has the biggest trade exposure to China of the 28 European Union nations, largely thanks to demand for its cars and the strength of its engineering industry.
“The 7 percent growth target that the Chinese government is aiming for this year looks too ambitious now and German exporters in particular are feeling the cooling of investment activity in China,” Eric Schweitzer told German regional newspaper Passauer Neue Presse.
Added to this, Chinese weakness is affecting other Asian markets such as Indonesia, Vietnam and Japan, he said.
German Chancellor Angela Merkel is expected to use a two-day visit to China on Thursday and Friday to boost German business ties with the Asian giant at a time when the Volkswagen diesel emissions scandal remains in the headlines.
Schweitzer said he did not think the reputation of German products in Asia had suffered as a result of the Volkswagen crisis.
“The ‘Made in Germany’ seal of quality does not seem to have been badly damaged even in China,” he said.
