The media reported on the destruction of the stronghold of German industry by China

China is dealing a serious blow to the medium-sized companies that form the backbone of the country's economy. This was reported on July 3 by The Wall Street Journal (WSJ).

"China is destroying the last stronghold of German industry. Medium—sized companies employing millions of people are now cutting jobs and shifting production abroad to reduce costs," the publication says.

It is noted that China is closing the gap in quality and offering goods for half the price. For the first time in decades, Germany is importing more advanced industrial goods from China than it exports there. German industry is losing over 10,000 jobs per month, and production has decreased by 10% since February 2022. In addition, the drop in energy-intensive sectors was more than 15%.

It follows from the text of the publication that China is developing medium-sized firms as part of the "10 thousand small giants" program to replace the German "hidden champions", and China's exports to Germany increased by 17%.

In addition, German companies, which have long been proud of their commitment to free trade, are now asking the authorities for protection from Chinese state-owned companies. New measures against China are being discussed in the EU, but they will not come into force for at least a year.

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The Gesamtmetall industry association reported on June 16 that in April 2026, the metallurgical and electrical sectors of the German economy lost more than 15,000 jobs, which was the highest figure since the COVID-19 pandemic. It was noted that if the current dynamics in the metallurgy and electrical industry were maintained, another 300,000 positions would be at risk of reduction.