Following the disruption of its natural gas supplies from Russia due to geopolitical tensions, Germany is increasingly relying on China to meet its power needs. This partnership has quickly made China one of the most important markets for keeping the German economy running.
For years, Germany heavily depended on Russian natural gas imports to sustain its energy infrastructure. However, Russia’s invasion of Ukraine in 2022 and the ensuing trade sanctions imposed by Western nations have forced Germany to seek an alternative from Chinese-made energy infrastructure.
One of the most notable examples of this shift is in solar energy. Prior to the conflict in Ukraine, solar power accounted for about 8% of Germany’s electricity. In the years since, this figure has surged, at times providing two-thirds of the nation’s power. This rapid increase has been largely facilitated by solar products imported from China, which account for around 90% of Germany’s solar energy infrastructure.
Beijing is now also making inroads into the European nation’s wind energy sector. For the first time, Chinese-made turbines are set to be installed in a German offshore wind farm. The project is expected to power nearly half a million homes.
Meanwhile, German automobile manufacturers — including BMW, Mercedes-Benz and Volkswagen — have invested in production plants in China, capitalizing on the country’s dominance in the electric vehicle (EV) supply chain to reduce manufacturing costs.
However, the recent increase in European Union tariffs on Chinese EVs has sparked concern among these automakers. The German government has expressed support for its automotive sector. German Chancellor Olaf Scholz labelled the new tariffs as “illegal customs barriers” and warned of their far-reaching consequences.
