Germany is extremely vulnerable because of its reliance on China. China is currently its biggest trading partner and is increasingly ready to engage in economic conflict with the West.
Where They Went Wrong
Germany faces greater financial difficulty as a result of making communist China its top trading partner.
This comes after already severely harming its economy by being dependent on Russian gas, which the hostile government can turn off and on at will and has done.
With serious worries that millions of homes may not be able to afford heating costs this winter, Germany, including the remainder of the European Union, already appears to be sliding into recession.
Germany must cut gas use by 20% to avoid winter rationing, regulator says. Klaus Müller, head of federal network agency, warned that longer-term cost of ending Germany’s dependence on Russia would be “very high gas price” that could have big consequences. https://t.co/NonhB1q63l pic.twitter.com/ZpllfmYtdy
— Holger Zschaepitz (@Schuldensuehner) August 14, 2022
Even still, according to a report from the nation’s IFO Institut, things might potentially get much worse because of the country’s close economic ties to communist China. This could cause it to lose billions of dollars in the case of a trade war.
The research released on Monday claims such a tariff war will cost the German economy billions, with the automobile industry in Germany projected to suffer the worst loss of any German industry.
The group concludes by saying a trade war with China would be significantly worse for Germany’s economy than the effects of Britain’s exit from the EU.
In order to “avoid one-sided and crucial reliance on certain markets and totalitarian governments,” the report finally encourages Germany to forge closer ties with “like-minded nations” like the U.S.
The authors of the study beg the nation not to give up economic globalization, though.
If a trade war between the West and communist China does really break out in the following months, this will be the second economic catastrophe that Germany has suffered this year as a result of bad foreign policy choices.
A Series of Unfortunate Events
The first of these catastrophes, Vladimir Putin’s conflict in Ukraine, occurred earlier this year. It has been very problematic for Germany because of its overreliance on Russian energy supplies.
“If we fail to reach our target then there is a serious risk that we will not have enough gas.”
Germany must cut its gas use by **20%** to avoid a crippling shortage this winter, its top network regulator says https://t.co/jOz5oA9fAt#ONGT
— Helen Robertson (@HelenCRobertson) August 15, 2022
Russia has drastically reduced the amount of gas it supplies to the republic in central Europe, which caused the economy of the nation to suffer significantly.
Many people both domestically and overseas now fear that a sizable portion of the population won’t be rich enough to afford to heat their residences this winter.
Megalandlords have been trying to avoid the minimum heating standards in the country in an effort to save gas for the upcoming winter, telling their renters a “warm blanket will likely be necessary” this season.
Although German officials anticipate increasingly severe regional shortages throughout the nation over the winter, the overall effect of these shortfalls on the economy, society, and politics is now unknown.
As a result, many of these tenants may wind up being grateful if they are able to purchase gas at all.This article appeared in Powerhouse News and has been published here with permission.