#export-led-growth

#export-led-growth

"First of all, the Chinese have huge direct support for their auto companies. They have enough capacity in China to cover all the manufacturing, all the vehicle sales in the United States."

The World Bank's recent report argues that government intervention, when done right, can actually be an essential ingredient of economic success, reversing decades of opposition to industrial policy.

China has been flooding Latin American markets with low-priced exports, especially autos and e-commerce goods, as its exporters adjust to U.S. President Donald Trump's tariffs and geopolitical moves. The world's second-largest economy has become a major trading partner for many Latin American nations, seeking access to their abundant natural resources and growing markets while expanding its influence in a region Trump views as America's Backyard.

The sum of exports and imports between the two countries last year totalled 251.8 billion (roughly $296.6 billion), a 2.1% increase, according to Destatis. China was Germany's most important trading partner from 2016 all the way through to 2023. In 2024, the US briefly held the title. German Chancellor Friedrich Merz is also set to visit China next week, where he is set to discuss trade and other topics.

We have very specific concerns regarding our cooperation, which we want to improve and make fair, said Merz, in an acknowledgement of the strain faced by Germany's manufacturing sector from Chinese competition.