The German government wants to decouple from China. But German companies can’t afford to leave.

by Inside China Business [11-24-2025].

(RAD: Germany, Europe & the US are fighting the wrong economic war. They need to learn from the analysis of Jeffrey Sachs as to how Japan, Taiwan, China & the Asian Tigers grew their economies, instead of focusing on policies that are doomed to fail. — RAD)

Major German companies are accelerating their capital investments and expansions in China.

German policymakers insist that firms instead invest in Europe, where manufacturing industries are being hollowed out by high energy and labor costs, regulation, and collapsing consumer demand.

But German firms cannot afford to leave China. The depth of Chinese supply chains would take years to replace, and at far higher costs.

What's more, Asia is where almost all the consumer market growth is, with double-digit booms in consumer class populations with disposable incomes.

Closing scene, Xingfu Park, Weihai, Shandong

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