Germany Faces 'China Shock 2.0' as Government Fails to Act, Economists Warn

A new study released on May 29, 2026, warns that Germany confronts a "China shock 2.0," with economists cautioning that the federal government's passive stance is exacerbating the nation's sluggish growth. The research indicates that weak German growth is not solely domestic in origin but is increasingly driven by external headwinds from China, reminiscent of the 1990s "China shock" that reshaped global trade. Despite the warnings, Berlin has yet to outline a coordinated policy response, leaving Europe's largest economy vulnerable to prolonged stagnation.