German of the day: Preisgestaltung

That means pricing policy.

U.S. Launches Trade Investigation Against Germany Over Drug Prices – Washington accuses Berlin of underpaying for innovative drugs. If the investigation yields corresponding results, punitive tariffs could even be imposed.

The U.S. has launched a trade investigation against Germany regarding drug pricing. According to several media reports, Washington intends to examine whether innovative drugs are systematically underpaid on the German market, causing U.S. patients to bear a comparatively high share of research and development costs.

De-risk is de-problem

No de-risk, no fun?

Germany’s China problem – and why de-risking hasn’t worked.

Dan Wang of Eurasia Group discusses the paradox of Europe’s current trade strategy, noting that Germany’s efforts to “de-risk” over the past years have actually deepened its reliance on China’s supply chain.

Shock treatment isn’t working for Germany

A more radical resuscitation remedy may be needed.

Germany urged to stop admiring Beijing and wake up to ‘China Shock 2.0’ – ‘China has already eaten much of German industry’s lunch and is preparing to start on dinner,’ thinktank says.

Germany must stop admiring China’s success in the EU or it will sleepwalk into the kind of deindustrialisation the US experienced 25 years ago, a leading Brussels thinktank has said.

Deeper ties to China?

Smart move, Germany (Schleswig-Holstein).

Reminds me of those deeper ties to Russia right before the war in Ukraine broke out.

German state eyes deeper China cooperation in energy, innovation – Significant potential exists to deepen cooperation between the northern German state of Schleswig-Holstein and east China’s Zhejiang Province, particularly in energy transition, hydrogen and advanced manufacturing, according to Daniel Guenther, minister president of Schleswig-Holstein.

His remarks come as the two regions mark 40 years of partnership, with both sides seeking to expand ties despite an increasingly complex geopolitical and trade environment.

Germany warning China again

China still not giving a lā shǐ.

Germany’s Leader Delivers a Blunt Warning to China on Trade – Chancellor Friedrich Merz laid out his complaints in a frank message to his hosts on a trip to Beijing that China had designed to showcase their relationship.

Chancellor Friedrich Merz of Germany arrived in China on Wednesday with an outstretched hand and a list of complaints for his hosts, asking for closer diplomatic ties but also relief from economic policies that he said were impeding “fair competition.”

Germany + China = Shock

For Germany.

“The China shock is here,” the German Economic Institute declared last year. Indeed, 2025 will go down as the year in which it could no longer be denied. Germany’s trade deficit with China reached a record level of €87 billion—an increase of €20 billion compared to the previous year. And German exports to China continue to be in free fall. The United States, France, the Netherlands, Poland, and Italy have by now become more important export markets for Germany than China.

Maybe not the best top trading partner to have.

A Tale of Two Headlines

“German business lobby warns of unfair trade practices by China” vs. “China overtakes US to become Germany’s top trading partner.”

China has overtaken the US as Germany’s most important trading partner, according to figures released by Germany’s Federal Statistical Office (Destatis) on Friday.

The sum of exports and imports between the two countries last year totaled €251.8 billion ($296.6 billion), a 2.1% increase, according to Destatis.

China was Germany’s most important trading partner from 2016 all the way through to 2023. In 2024, the US briefly held the title.

German Chancellor Friedrich Merz is also set to visit China next week, where he is set to discuss trade and other topics.

German of the day: Abbau

That means reduction, to dismantle or cut.

German car industry sheds 51,500 jobs in a year – The dip equates to almost 7% of the total workforce in the German auto sector. Faltering exports to China and the US play a role, as new tariffs raise barriers to entry in both these core markets.

“The US and China are currently the cause of major concerns.”

Shock treatment about to begin in Germany

China shock treatment.

If the Chinese can’t displace the American workforce anymore, then they’ll displace another one (or two, or three…).

The China shock hits Germany – Trade with China displaced large parts of the American workforce in the 2000s, but Germany did not experience a similar shock at the time…

Not at any price…

But at all costs.

The clock is ticking.

German exporters don’t want US trade deal ‘at any price’, says trade group – The European Commission aims to reach a trade agreement outline with the U.S. in the coming days, ahead of the August 1 deadline set by President Donald Trump for broad tariff increases.

Exports to the United States dropped 7.7% in May month on month, following a 10.5% decline in April, data showed on Tuesday.