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February 12, 2024
Deindustrialization

🇩🇪🏭📉 — 🇺🇸 Bloomberg | Germany’s Days as an Industrial Superpower Are Coming to an End | As political paralysis grips Berlin, the energy crisis was the final blow for a growing number of manufacturers | February 10, 2024:

"(...)

The underpinnings of Germany’s industrial machine have fallen like dominoes. The US is drifting away from Europe and is seeking to compete with its transatlantic allies for climate investment. China is becoming a bigger rival and is no longer an insatiable buyer of German goods. The final blow for some heavy manufacturers was the end of huge volumes of cheap Russian natural gas.

(...)

In some cases, the industrial downshift is taking place in small steps like scaling back expansion and investment plans. Others are more evident like shifting production lines and trimming staff. In extreme instances — like Vallourec SACA’s pipe plant, once part of fallen industrial giant Mannesmann — the consequence is permanent closure.

(...)

China is now causing trouble for Germany in a number of ways. On top of its strategic shift into advanced manufacturing, a slowdown of the Asian superpower’s economy is sapping demand for German goods even further. At the same time, cheap competition from China is worrying industries key for Germany’s climate transition — and not just electric cars."

#Geoeconomics

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