Why German companies can't quit China

For Matthias Rüth, there's no question of pivoting his business away from China — despite growing government warnings about the risks of being too invested in the country. As the managing director of Frankfurt-based rare earths and commodity trading firm Tradium, China remains fundamental to the business, given the country's almost complete dominance of the increasingly vital rare earths sector.

"With China covering, for instance, more than 95% of the rare earth market, you cannot replace this in a short time," he told DW. "These are long-standing and reliable trading relationships, and the material and processes are proven."

For Rüth and so many other firms in Germany, China remains an obvious place to do business. For a long time, the German government fully embraced and encouraged that position. However, the country's authoritarian shift under President Xi Jinping — which has seen China back Russia in the aftermath of the invasion of Ukraine — has changed EU-China relations.

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