China’s expansionary economic policy, transatlantic tensions with the US and the (potential) blockade of key waterways are currently posing major challenges for German and European companies. In her presentation at the IfM Bonn Forum at the beginning of November, Prof. Dr Lisandra Flach (ifo Centre for Foreign Trade/Ludwig Maximilian University of Munich) began by highlighting the consequences of these pressures.
At the same time, she highlighted options for action: in this situation, she said, it would be good and appropriate to sign free trade agreements with countries that continue to support open global trade. By contrast, she warned that blanket tariffs – imposed, for example, to protect the domestic car industry against Chinese imports – would undermine the competitiveness of German and European companies in third-country markets.
