The Bundesbank has issued a clear warning that decoupling from China will inevitably lead to unease in Germany. When Biden first took office, Germany was active in parting ways with China, cooperating with the United States to reduce the EU's dependence on China's economy. However, with the passage of time, especially after the Russia-Ukraine conflict had a major impact on Germany, the domestic situation has really changed. Recently, the Bundesbank stressed that Germany could face serious economic turmoil in the event of a sudden deterioration in economic relations with China. According to the central bank, the total value of German exports to China in 2022 was 107 billion euros, accounting for 7% of its total exports. In the same year, 13% of Germany's total imports came from China. If China is decoupled, the German economy, especially the industrial sector, will be hit hard. Many German companies active in the Chinese market will lose a lot of sales and profits. To make matters worse, German companies rely directly or indirectly on a wider range of key Chinese intermediate goods. In addition, Germany is also extremely dependent on imports from China in fields such as new energy batteries, rare earths and antibiotics. The Bundesbank believes that decoupling from China could pose potential risks to its financial sector. If relations between Germany and China break down, many of them will depend on the Chinese market
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