Is Germany ignoring the Hong Kong protests because it needs China’s cooperation?

US-China trade war crippling German economy

Germany’s economy is suffering badly from the ongoing trade war between the US and China and this is one of the main reason for its upcoming trade talks with China. Merkel on Thursday starts a three-day trip to China, a major trade partner of the biggest EU economy, with a large business delegation in tow. It is expected the EU power state is nowhere near making a recovery, and that recession is now a very real and dangerous prospect. Thomas Gitzel, chief economist of the Liechtenstein VP Bank said: “The misery in the manufacturing sector continues.” Carsten Brzeski, chief economist of the direct bank ING Germany added the “development significantly increases the probability of a recession for the German economy”. The annual decline of Germany is expected to be four percent at the end of the financial year of 2018/2019. The news comes after the German economy shrank by 0.1 percent in the second quarter, gross domestic product figures revealed today sending Germany halfway towards recession as Angela Merkel faces economic contraction. Germany’s trade talks with China will be crucial in at least attempting to reverse this trend, as China as an economic giant, has the weight to do so if a positive trade agreement is found.

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