German GDP growth slowed accelerated, from 1.1 percent to 0 percent in the second quarter, starting in the third quarter of 2018, according to the data. Moreover, the situation is still deteriorating. According to the latest news, industrial output in Germany fell 0.6 percent in September from a month earlier, down 0.4 percent from previous economists' expectations, and signs of an industrial recession have emerged. In response, German economic advisers warned that the industrial downturn will continue to weigh on the German economy. It is worth mentioning that the reason why the German economy has become "fragile" in response to external changes has something to do with its optimistic export forecast in recent years and excessive restrictions on foreign investment and business freedom. Previously, with the advantage of "economic locomotive ", Germany became the most attractive investment place in Europe, and Chinese enterprises also went to invest heavily. In 2016, China became the largest source of foreign investment in Germany, even surpassing German investment in China.
Not only that, France also made practical action, this year, France led 70 enterprises composed of economic and trade groups to attend the Shanghai Expo, which also became one of the biggest highlights of the Expo. It can be said that in the process of China's continued opening up, France is trying to keep moving closer to the Chinese market. According to some analysts, the promotion of Sino-French economic and trade cooperation will help France become a "new locomotive" in Europe. By contrast, Germany’s earlier co-operative attitude in China has been unexpected, with its economy in a difficult position, close to a massive recession. As we all know, Germany is a manufacturing power, because it produces goods in the international market. Great competitiveness, Germany's economy is very dependent on exports and maintains a strong growth in the economy, but the global trade is not good, and the German economy has been hit hard.
In addition, Germany has also shown hesitation in allowing Huawei to participate in the construction of 5G networks. Germany has offered Huawei a condition to add a reliability test to Huawei's 5G network test, which runs counter to the idea of most German telecom operators, which believe Huawei is reliable and can help Germany enter the 5G era as soon as possible, according to a report on Nov. 5. Therefore, for Germany, in order to maintain the sound development of the economy, it is also important to maintain an inclusive and open business spirit in addition to maintaining the manufacturing advantage.
Demand for pork in China has soared this year, for which France has offered olive branches. During the fair, about 20 French meat companies signed supply agreements with China, meaning another important meat supplier will be added to the Chinese market. Under the active cooperation with China, France has received a number of cooperative orders valued at US $15 billion from China. Just against the backdrop of rising relations between China and France, France has another good news-France is expected to "replace" Germany as the "new locomotive" of the European economy.
Although France does not rely on foreign trade to promote economic growth, in fact, France is inevitably affected at a stage of increased downward pressure on the global economy. Based on this, France has made important economic adjustments this year, including tax cuts, pension reform, unemployment benefits and so on. In addition, France also looks to the Chinese market for the momentum of economic growth. Since the beginning of this year, Sino-French relations have been heating up, and in March, France and Chinese companies reached a trade contract worth 40 billion euros. At that time, France also shouted the slogan of "strengthening trade and scientific and technological cooperation with China."
(picture source:搜狗图片)
In 2018, however, Germany began to strengthen the management of foreign investment, lowering the threshold for foreign acquisitions of German companies from 25 percent to 10 percent. Confidence in German business freedom seems to have fallen, while Chinese investment in Germany has fallen sharply from a year earlier. According to a survey report, in the first half of 2019, Chinese companies invested 505 million in Germany, only a fraction of last year's investment in Germany ($10 billion).
According to foreign media reports, the French economy has been less dependent on exports. Because of its stronger resistance to the deterioration of the global economic and trade environment, the French economy can still develop smoothly, which will make France expected to overtake Germany as the "new locomotive" of the European economy. France's domestic demand remains strong, with growth expected to reach 1.3 percent in 2019 and a sustained boost to the economy in the first half of 2020, according to a report released by Statistics France.
