08/09/2022_Edi_Trade

Germany’s major dependencies on China are once again coming into focus following the Russian invasion of Ukraine. In extreme cases, economic dependencies can be very damaging to a society, as the example of Russian gas is currently demonstrating. But how costly would it be for Germany to become less dependent on China? The ifo Institute has calculated this question in several scenarios. Felix Lee spoke with the study’s co-author, Florian Dorn, about the high costs and which industries would be particularly affected. The Ifo researcher advises German companies to diversify their supply chains more.