German manufacturers, including Volkswagen, BASF and Thyssen Krupp are downsizing, and the proportion of the secondary industry in Germany’s economy in 2023 dropped by 2.6 percent from 23 percent. German economy is usually supported by the pillars of automobile, pharmaceutical, chemical and mechanical manufacturing. Losing its competitive edge based on innovation, engineering education, harmonious labor-capital relations, a huge overseas market and cheap Russian gas, the country is challenged by the new round of industrial revolution and geopolitical tensions exemplified by the Russia-Ukraine war. The country is advised to boost the economy by riding the tide of green and digital technologies. To lower costs, many German enterprises have shifted their businesses to China. Experts believe the resilience of German industry, which survived the global financial crisis in 2008, will persist as long as economic challenges are not politicized.
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