The Impact of Hard Decoupling from China on Germany’s Economy: Key Insights

Baqaee et al. (2024) discuss the potential impacts of a hard decoupling from China on the German economy. This work appears in the book "Paris Report 2: Europe’s Economic Security," edited by J. Pisani-Ferry, B. Weder di Mauro, and J. Zettelmeyer. The book is published by CEPR Press and is available in Paris and London. You can access it online at the following link: Paris Report 2: Europe’s Economic Security.

The authors include D. Baqaee, J. Hinz, B. Moll, M. Schularick, F. Teti, J. Wanner, and S. Yang. Their research examines how cutting economic ties with China could change Germany’s economic landscape. The study aims to provide insights into the long-term economic effects of this potential shift.

This analysis is crucial for understanding the future of European economic security and the role of major trade relationships. The findings will interest policymakers, economists, and business leaders.