Initial situation/policy problem
Minimising risks related to international trade is regarded as a key challenge for the German economy, alongside the "green and digital transformation" and demographic change. This so-called "de-risking" has gained particular attention in light of recent international crises, especially concerning trade relations with the People’s Republic of China. After all, German industry remains heavily dependent on raw materials that are either sourced or processed in China. For years, China has been Germany’s most important trading partner due to the high volume of imports. At the same time, studies on Germany’s reliance on intermediate goods from China highlight further diversification potential to reduce the German economy's dependency on China.
Research goals/approach
The project examines, i. a., the extent to which Mittelstand industrial enterprises depend on intermediate goods from China for the production of key technologies required for the "dual transformation". Thereby, the study should determine to what extent alternative sourcing countries can be utilised and identify obstacles that might hinder such a diversification. In light of the "Critical Raw Materials Act" (CRMA) adopted at the EU level in March 2024, the project will also explore to what extent companies employ alternative measures to reduce raw material dependencies, such as recycling. First, the current state of research will be determined by a literature review. To deepen the insights gained, interviews will be conducted with industry associations and companies.