Story thread · 2 reports / 2 sources

ECB says China's industrial rise is squeezing German manufacturers out of global markets

investinglive.com · 1dShare

The findings reinforce the structural case against Germany's export-heavy industrial base, a headwind for autos, machinery and capital goods names that a cyclical recovery may only partly offset. For the ECB, cheaper Chinese imports are a potential source of downward pressure on goods prices, which could complicate the inflation outlook at a time when energy costs are pushing the other way. Central European economies tied into German supply chains face knock-on exposure. Weaker export competitiveness also offers little support for the euro over the longer term, even if near-term moves stay driven by rate expectations. China is now beating Europe's industrial champions abroad while needing fewer of their goods at home, and the ECB says Germany is feeling it most. Summary: The ECB said China's industrial transformation is pushing European firms out of global markets, especially in machinery and transport equipment The EU's share of global goods exports has fallen most in sectors and dest

First report: China's industrial rise hits German manufacturers hard, ECB finds — reuters.com, 1d