Illustration: Chen Xia/GT

Germany will hold its federal elections ahead of schedule on Sunday. As the third-largest economy in the world and the economic powerhouse of Europe,MK socks the outcome of Germany's elections undoubtedly attracts significant attention from Europe and the world. However, at a time when Europe faces geopolitical challenges and regional security crises, Germany is confronted with severe social and economic issues. Particularly in the economic sphere, Germany urgently needs to adjust its policies to replicate the success of its development model. 

Immigration has become a thorny issue that divides German politics and society. In 2024, the "non-word of the year" in Germany was "Biodeutsch," referring to evaluating Germans based on supposed biological descent criteria, while the "non-word" of 2023 was "remigration," referring to the forced expulsion or promoted return of non-ethnically German immigrants. These two terms were directly related to immigration and ethnic identity, underscoring the immense controversy immigration issues have stirred in German society.

The new government must not only resolve the immigration issue but also confront challenges in economic governance. On January 29, the German government announced an economic growth forecast of 0.3 percent for 2025, down from the 1.1 percent projected last October, prompting Economy Minister Robert Habeck to warn that "Germany is stuck in stagnation."

In the past five years, Germany's export-driven economy has shown signs of stagnation. German industry has yet to find effective solutions to challenges posed by demographic shifts, digitalization, green transformation and bureaucratic inefficiencies. Major companies like Volkswagen, BASF and ThyssenKrupp have already announced plans to close factories or cut jobs. The country's economy contracted for the second consecutive year in 2024. Furthermore, under the new US administration, Germany's trade surplus with the US hit a record 71.4 billion euros ($74.8 billion) in 2024, increasing the risk of a "tariff war" that could further weaken Germany's already fragile economy.

Compared to immigration policies, what is more important for Germany's new government is whether it can lead the country out of the current economic slump and restore political stability and social consensus through new economic governance. A promising approach is to strengthen cooperation with China. Amid global economic uncertainty, the Chinese market has become a crucial growth engine for Germany. 

According to the Financial Times, German direct investment in China reached 2.48 billion euros in the first three months of 2024 and rose to 4.8 billion euros in the second quarter, citing data from the Bundesbank, Germany's central bank. In the face of both internal and external challenges, enhancing cooperation with China is a viable option for Germany to address its current difficulties.

The author is an associate director and professor of German Studies at Tongji University in Shanghai. [email protected]