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Can Germany’s economy avoid a China shock?

By Dalia Marin

02 May 2023 · 3 min read

Editor's Note

The electric-vehicle revolution that propelled Chinese carmakers to global prominence now threatens the future of Germany's automobile sector. Policymakers need to act fast, Dalia Marin writes in PS.

MUNICH – The German and American automobile executives attending this year’s Shanghai motor show may have expected to take a victory lap following their three-year pandemic-related absence. Instead, Western manufacturers were met with a harsh reality: dozens of new Chinese-made electric vehicles are coming for their market share.

Over the past few years, the rise of EVs has propelled the Chinese auto industry to global prominence. China’s auto exports already overtook Germany’s in 2022, following a 54% increase, and the country is projected to surpass Japan to become the world’s largest car exporter this year.

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