torsdag 26. februar 2026

China shock: Rivalry tests Merz and German economy

China's rise from poverty to the world's second‑largest economy rewrote the rules of globalization. Now Beijing's push into high-end technology is unfolding at an even faster pace. While the United States and United Kingdom had decades to absorb the first China shock at the turn of the century, those confronting the second — above all Germany — have had far less notice.

An obvious sign that Beijing's huge investments in high-tech were paying off emerged shortly after the first Chinese electric vehicles (EVs) rolled off transporters across Europe in 2023. While few believed they would make serious inroads against Germany's legacy carmakers, just over two years later, China's rivals have become a disruptive force in the European market.