Mark Leonard's World in 30 Minutes21 Aug

Germany’s second China shock

This week, Mark Leonard is joined by Janka Oertel, director of ECFR’s DARE* initiative, and Andrew Small, head of ECFR’s Asia programme, to examine the growing impact of the “China shock 2.0” on Germany and Europe.

A new wave of Chinese competition, driven by overcapacity and state-backed industrial strength, is hitting sectors such as car manufacturing, chemicals and machine tools. Germany is at the epicentre, with mounting job losses raising questions about Europe’s long-term economic resilience and competitiveness. The crisis is reshaping German politics, exposing government divisions and putting pressure on Chancellor Friedrich Merz ahead of September’s potentially divisive regional elections.

Together, Mark, Janka and Andrew discuss the policy options being considered in Brussels and in European capitals—from emergency trade measures to new industrial strategies. Can Europe protect its industrial base without triggering a damaging escalation with China? Is Germany able to lead a coherent European response amid its own political turbulence?

This podcast episode was recorded 12th August 2026.

Bookshelf

China Shock 2.0: The Cost of Germany’s Complacency, by Brad Setser and Sander Tordoir

The art of the swarm: Systemic rivalry with China on European terms, by Andrew Small

Dear Britain, by Annette Dittert

[AS1]Just flagging as we usually have the exact date (or do we not want to do it this time?)

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