New York Times article puts Germany-China economy ties in focus

New York Times​​ economics correspondent Jack Ewing recently put the Germany-China economy in focus, illustrating the recent downshift in emerging markets makes Germany, as well as all of Europe, economically vulnerable. Here are a few takeaways from the article: 

“We are going from an unbelievable boom to a down phase”

​Karl-Heinz, Rieser, Managing Director of Eickhoff

• The German manufacturer Eickhoff Bergbautechnik sold less than half of their shearer loader (mining) machines compared to last year - drops in sales across midsize German exporters translate into slower overall economic growth. Suppliers of mining equipment generated exports of €6.2 billion in 2012, exports in 2015 fell to €3.5 billion.
• ​Germany contributes more than a quarter of financing for the new bailout fund, European Stability Mechanism, to prevent the collapses of countries.​
• Automobiles are one of Germany’s largest exports. Last year, China became the biggest market for the German Porsche. But growth in the Chinese auto-market is expected to only be around 4% this year, half of last year’s percentage. With more developing countries, such as China, pulling back from the manufacturing German machine, the German and European economy becomes more vulnerable.

Read full article / ​Images via The New York Times

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