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Bundesbank warns against abrupt decoupling from China

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Published: January 25th, 2024,
Last updated: May 30th, 2025

In a study, the Bundesbank cautions against a too rapid decoupling from China. In its monthly report for January, the bank’s analysts state that „an abrupt decoupling, such as due to a geopolitical crisis“, would significantly impact the German industry. Companies directly engaged in China could lose a substantial portion of their revenue and profit base. Industries such as the automotive sector, mechanical engineering, electronics or electrical engineering would be particularly affected.

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