Supply chains will probably survive Germany’s new China strategy - Railfreight.com

Recent events like the war in Ukraine and the domino effect it brought to global trade and supply chains prove that strategies like Germany's are becoming all the more relevant regarding connectivity via rail or even sea. A Germany distanced from China could blow another strike to the fragile Eurasian transport. Yet, according to experts and the port of Hamburg, things might be way more straightforward, less dramatic and quite realistic in the end.

"I have the impression that the German government wants to diversify its economic relations
to reduce dependence on China, but it aims to do so gradually to limit potential damage to the German economy", points out Frans-Paul van der Putten, an expert and consultant on China and geopolitics. However, according to him, international supply chains and economies will likely regionalise and become more diversified globally, following a general trend.

He continues by saying that China is an important export market and production base for German companies. "The rail corridor to China has a valuable role in the German economy but does not contribute significantly to Germany's dependencies on China. So from that perspective, there seems no need for the German government to limit Germany's role in the Silk Road", he adds.

However, he warns that if German companies reduce their interaction with China, the Eurasian rail corridor will become less relevant for Germany.