There are articles all over the internet stating matter-of-factly that the US-China trade war has had a hand in the German recession. Why is that the case? At first blush it seems like newly un-fulfilled demand in the US and newly available supply/capacity in China would be a boon for other countries. What am I missing?
Germany exports mostly industrial goods, such as machines (for manufacturing). As such, China is a far more important market than the US. The overlap of things both China and Germany manufacture is relatively small.
Or, in economists' terms: Germany's and China's goods are complementary more than competitive.
