Poor Germany Becomes Poorer

Germany's economy has its own pandemic

By Darryl Weng

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Considered progressive in America, my friend from Germany would frequently discuss politics with me. Due to my lack of knowledge of German politics, we frequently discussed politics in relation to America. This morning, however, was different. We had a discourse specifically on Germany’s political situation. Thankfully, I wasn’t too lackluster on the recent news of Germany. Despite our constant political disagreements, we both took note that Germany was in a dreadful situation of economic relations with China. It was until this evening that I realized how important the relationship between Germany and China was. Especially with the German election of about a month ago, news of Germany has been catching global attention, and Germany’s relationship with China is now one of the most important issues in the world. As a result, I thought, perhaps, I should outline Germany’s situation more clearly through this article.

Olaf Scholz, the favored candidate for the German chancellorship, seems to be close to ending the Merkel era. A new shift in policies is sure to happen. His political decisions will determine the direction Germany and the EU turn towards. But most importantly, as an American, Scholz’s decisions will impact the foreign policies of America towards Germany and China. This all depends on Scholz’s foreign policy towards China. The only problem is that China is a major consumer of German goods and services, making China’s massive influence on Germany both an economical and political one. As Germany recovers from the pandemic, Germans look forward to a full recovery in the economy. However, immigration from refugees, along with Germany’s well-established welfare system, slow and hamper economic recovery. As a result, Germany is in no shape to accept any more economic declines. This makes matters complicated as the new German Chancellor must determine whether to appease America or China, which neither is ideal given that U.S-China relations are quite sour. Given that Germany is a major decision maker in the EU, the EU will also be affected through Germany’s decisions. In short, Germany and the entire EU are facing a dire situation that must be quickly resolved before conflicts drag on.

Luckily, Mr. Scholz has roughly two years to simply ignore U.S and China relations with Germany completely. After all, America’s current leadership isn’t in tip-top shape to make the Chinese Communist Party cower in fear. But, of course, we Americans don’t want that. So, if Biden forgets about his son and possible charges against him, we might put pressure on Germany and, being the no. 1 consumer, outside the EU markets, of German products, Germany might reconsider such a lax decision. Germany, of course, would not wish to upset such a major consumer and receive a possible reduction in military support. Mr. Scholz, therefore, would most likely choose to negotiate with China the best he can, in an attempt to save Germany’s economy.

In two years, however, Scholz might have to think again. If America’s leadership transfers into the hands of one who supports foreign policies such as those in Trump’s presidency, then Scholz has no choice but to listen to America and avoid loss of American military support, increase of American tariffs, and American backing of the EU. Simply stated, if Scholz were to become the new German Chancellor, he must quickly evaluate how Germany can escape China’s talons and keep a fine relationship with the ever-so powerful U.S.A. Germany’s current situation is not the greatest and, not surprisingly, one of the worst.

A previous version mentioned Mr. Scholz as Mr. Shloz. The error has been corrected.