Europe profits from China's recovery

China's importance for Germany has grown over the years. The European Union's exports to China are much larger than the United States' exports to China, both in absolute and relative terms. Within the EU, Germany makes up almost half of the EU's exports to China. Germany's export exposure to China is about two times higher than the EU's average when compared by GDP and almost five times higher than the US' (according to 2022 data).

The EU economy is even more dependent on China when it comes to imports. In 2022, imports from China accounted for 4 percent of the EU's GDP, while only 2 percent of US imports came from China.

Business with China contributed about 15 percent to DAX 40 companies' earnings and 9 percent to EURO STOXX 50 companies'. Germany's auto industry, in particular, depends on Chinese exports (25 percent earnings exposure), with the semiconductor and chemicals industries relying heavily on business with China as well.