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Top Fund Manager: The German Economy Must Change its Business Model

On Sunday, August 21, The German newspaper Munchner Merkur (Munich Mercury) published an interview with Kaldemorgen  who saw great danger because of the dependence of German companies on China and called for a realignment.

The dependence of the German economy on China has “reached levels that lead to major dependencies,” warned Kaldemorgen. “The mystification of globalization must come to an end now. … In the future, Germany will have to do a lot of things itself again.”

Kaldemorgen is considered the best-known German fund manager. With a volume of around 13.5 billion euros, the fund he manages, DWS Concept Kaldemorgen, is one of the largest investors in Germany.

Kaldemorgen told Munchner Merkur, “Anyone reading the latest signs correctly should recognize that we need to reduce  our dependence on China significantly, both for exports and imports.”

“The Russian attack on Ukraine has raised many questions, including how we intend to deal with the authoritarian regime in China in the future.”

“Volkswagen makes about 40 percent of its sales in China. BASF is planning a plant there for 10 billion euros. Isn’t there a much greater danger for the German economy here?”

“The German economy must therefore start changing its business model.”

“The USA and Europe are already moving closer together again. This is mutually beneficial. For example, Germany obtains LNG gas from the USA, and Intel is building a semiconductor plant near Magdeburg for 17 billion euros.”

Source: Radio Free Asia, August 22, 2022