The German Chamber of Industry and Commerce sees major economic risks from China's zero-Covid policy.
DIHK foreign trade chief Volker Treier said on Monday in Berlin: "The lockdowns that are now starting again, but also the increasingly protectionist economic policy are a major burden for German companies in China."
Many German companies are currently realigning their supply chains.
"More than a third of German companies in China are planning to expand and diversify their supplier networks outside of the country," says Treier.
Other Asian markets are particularly important.
“For many companies, however, completely abandoning the Chinese market is not an option.
Rather, the German economy is about positioning itself more broadly.
Heavily dependent
Germany is heavily dependent on China when it comes to raw materials, such as silicon or rare earths.
Free trade agreements can help speed up the diversification process.
However, we need them not only with countries like Canada or New Zealand, but also with other important partners like Mercosur, Indonesia or India.”
In China, the strict corona policy has led to the largest protests in decades.
Hundreds of demonstrators took to the streets in the capital Beijing and other megacities.