Germany is turning into a "digital colony"
Despite repeated warnings from companies and associations, Germany's digital dependence on foreign countries is steadily increasing, according to findings from the Bitkom digital association. In a representative survey conducted "across the German economy" with 600 companies, 62% of respondents described themselves as "strongly dependent," and another 32% as "rather dependent."
Association President Ralf Wintergerst stated in a press conference that this represents a deterioration compared to the 2021 survey. The manager is not only concerned that 94% of companies have to source digital products from abroad but also that two-thirds of local firms do not sell their products abroad.
Quickly in trouble
12% of the surveyed companies would have a survival period of merely six months in case of disruptions to the supply chains for digital technologies and services. Nearly one-fifth would manage to survive for just seven to twelve months.
In 2021, these figures were 9% and 13%, respectively. The top dependencies are on China and the US, each accounting for around 50% of the German economy, while Europe without the UK also reaches the same level. Wintergerst emphasized that there are hardly any chances to relocate or bring back the sourcing of parts and services in certain parts of the value chain to Germany. In particular, digital devices such as smartphones and laptops or components like semiconductors "migrated decades ago," as Wintergerst put it. In Asia, especially in China, a production network has emerged that cannot be easily relocated or replaced.