(Bloomberg) — Disappointing economic-growth numbers from China are a reminder to its biggest trading partners to diversify, according to Bundesbank President Joachim Nagel.
(Bloomberg) — Disappointing economic-growth numbers from China are a reminder to its biggest trading partners to diversify, according to Bundesbank President Joachim Nagel.
“It is getting more challenging,” the German central bank chief told Bloomberg Television on Monday. “We have to take this into account and also really gives us maybe an indication that we should reduce trade dependencies regarding China.”
Nagel spoke just hours after data revealed that China’s recovery lost momentum in the second quarter, putting Beijing’s growth target for the year at risk and adding to concerns about a slowdown in the world economy.
“We have to realize that China is getting more volatile,” Nagel said. “Maybe China is getting a more normal economy.”
His comments chime with a push by Chancellor Olaf Scholz’s administration for Germany’s biggest companies to make sure their risks in China are manageable.
Asked whether India may step in to replace some of the trade Germany does with China, Nagel said this “could be” an option. “I think diversification is so good for so many things and I guess it’s also good for trade.”
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