China has managed to outperform the US and the UK in a German ranking of the world’s most reliable trade partners, compiled from the latest survey of 2,000 German companies by Frankfurt-based Commerzbank.
Topped by only Germany itself and France, China landed in the third spot in the broad assessment, which focusses on political and economic conditions affecting international trade. The US, ranked fourth, is reportedly far behind its bitter Asian rival in their ongoing trade dispute.
Nearly 70 percent of German corporations with a physical presence in the US, and 64 percent of exporters to the country, expressed deep concerns that Washington’s foreign and trade policies would have a negative impact on business.
Moreover, the Trump administration introduced steel and aluminum tariffs against imports from a vast number of countries, including Canada, Mexico, the European Union, China, Russia, India, Japan and Turkey.
Apart from that, the White House launched a fierce trade war against China, accusing Beijing of unfair trading practices and intellectual property theft.
When it comes to Britain, the key factor behind its declining trade credibility is the country’s potential exit from the European Union. Brexit uncertainty has triggered fears among the country’s international partners over the potential impact on their businesses and Germany is no exception. More than 80 percent of the surveyed companies with a branch or office location in the UK, and 60 percent of exporters to the country, fear that Brexit would hurt their interests.
Among 115 German companies thinking of relocating their production facilities overseas, 31 percent are reportedly eyeing China, compared to 11 percent considering a move to southeast Asian countries, and nine percent to the US.