Listed on U.S. over-the-counter (OTC) markets, Germany's largest companies by market cap (> $50 bn), and its companion theme of companies with market caps between $20bn and $50 bn, are mirror images of the geopolitics fragmenting the country's economy by degrees of uncertainty : running the gamut from deep concern at Volkswagen
Turning its domestic haven of industrial manufacturing confidence into global storms, Germany's focus on world markets had managed to combine high quality industrial exports with a whiff of mercantilism, powering the trade balance with subdued domestic consumption
Rising from 30% of GDP in 2000 to 45% to 2022, exports may have known their heyday with leadership in automotive, mechanical engineering, chemical and electrical industry, Germany's key industries
The timeframe - 2000-2022 - mirrors the emergence of China as a global economic power after its accession to the World Trade Organization
The automotive industry grew addicted to Chinese markets for approx. 40% of its profits and the country's leadership in mechanical engineering used to be undisputed
China's shift to high tech products and innovation along entire supply chains laid bare Germany's blind reliance on the demand of industries which quickly turned into major competitors
As summarized by the Center for European Reform in January 2025, "Industrial production has been declining for over five years, a source of profound angst in a country where manufacturing contributes around 5.5 million jobs and 20 per cent of gross domestic product"
To reverse the lethal trends undermining the German economy, a radical review of policies dragging down industrial competitiveness must mesh with strong commitments to the European Single Market