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Economy

China's economy and Europe: what decision-makers should watch

Briefing: China is one of Germany's most important trading partners and increasingly a competitor in industrial sectors.

By the editors11 September 20257 min read

China is one of Germany's most important trading partners and increasingly a competitor in industrial sectors.

For executives, the main question regarding “China's economy and Europe” is their own exposure: which costs, revenues and financing conditions depend on it, directly or indirectly?

A proven approach is to run scenarios and monitor leading indicators regularly. That puts decisions on a solid footing without reacting to every headline.

The debate around “China's economy and Europe” is not new, but it has grown more urgent since 2022. The energy price shock, the turn in interest rates and geopolitical tensions have called many old certainties into question.

Economists and industry bodies assess the situation in different ways. Most agree, however, that reliable conditions for investment decisions are crucial.