{"id":1640713,"date":"2022-09-14T07:34:27","date_gmt":"2022-09-14T11:34:27","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1640713"},"modified":"2022-09-14T07:35:21","modified_gmt":"2022-09-14T11:35:21","slug":"germanys-green-energy-follies-are-a-warning-to-the-united-states","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/germanys-green-energy-follies-are-a-warning-to-the-united-states\/","title":{"rendered":"Germany\u2019s Green Energy Follies Are A Warning To The United States"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgermanys-green-energy-follies-are-a-warning-to-the-united-states%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1640713&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Germany is\u00a0<a href=\"https:\/\/www.reuters.com\/markets\/exclusive-german-economy-ministry-reviews-measures-curb-china-business-2022-09-08\/\" target=\"_blank\" rel=\"noreferrer noopener\">reportedly<\/a>\u00a0working on reducing the nation\u2019s economic dependency on Communist China due to concerns about \u201chuman rights abuses and the risks of being beholden to an increasingly assertive authoritarian state,\u201d Reuters reports.<strong>\u00a0<\/strong>Berlin finally learned one lesson from Russia\u2019s invasion of Ukraine: it\u2019s dangerous to economically rely on authoritarian regimes.\u00a0<\/p>\n<p>Former German Chancellor Angela Merkel\u2019s policies \u2014 building an economy based on Russia\u2019s energy supply and China\u2019s market demand \u2014 were primarily responsible for German\u2019s economic predicament today. Zealous in fighting climate change, Merkel shut down coal mines and retired the majority of nuclear power plants in Germany while relying on\u00a0<a href=\"https:\/\/www.theguardian.com\/world\/2022\/jun\/02\/germany-dependence-russian-energy-gas-oil-nord-stream\" target=\"_blank\" rel=\"noreferrer noopener\">Russia<\/a>\u00a0for energy and raw materials, despite repeated\u00a0<a href=\"https:\/\/cnsnews.com\/article\/international\/patrick-goodenough\/germans-laughed-when-trump-warned-against-reliance-russian\" target=\"_blank\" rel=\"noreferrer noopener\">warnings<\/a>\u00a0from the Trump administration. By 2020, Russia supplied more than half of Germany\u2019s natural gas and about a third of all the oil that Germans burned to heat homes, power factories, and fuel vehicles.<\/p>\n<p>While paying Russia billions of euros for energy supply (the money no doubt helped finance Putin\u2019s war chest), Merkel neglected to invest in German\u2019s armed forces, even after Putin annexed the Crimean Peninsula from Ukraine. She outsourced Germans\u2019 and, to a larger extent, Europe\u2019s security to the United States and simply hoped for the best. When Merkel retired in 2021, after being in office for 16 years, German\u2019s\u00a0<a href=\"https:\/\/www.aicgs.org\/2022\/07\/angela-merkels-russia-legacy\/\" target=\"_blank\" rel=\"noreferrer noopener\">military<\/a>\u00a0was left \u201cin a weak position and require years of renewal to become a credible deterrent to Russian aggression,\u201d according to The American Institute for Contemporary German Studies.\u00a0\u00a0<\/p>\n<h2>Strengthened China Ties<\/h2>\n<p>Besides empowering and enriching Russia, Merkel was keen on strengthening Germany\u2019s economic ties with China while in office. No other leaders from Western democracies had visited China more often than Merkel (she had 11 state visits to China). <\/p>\n<p>To promote Germany\u2019s export-oriented economy, Merkel was indifferent to China\u2019s\u00a0<a href=\"https:\/\/thefederalist.com\/2020\/04\/23\/how-beijing-is-exploiting-the-pandemic-to-expand-its-global-power\/\" target=\"_blank\" rel=\"noreferrer noopener\">aggression in the South China Sea<\/a>, its geopolitical expansion through the \u201c<a href=\"http:\/\/thefederalist.com\/2017\/06\/12\/chinas-project-century-aims-unseat-u-s-worlds-dominant-power\" target=\"_blank\" rel=\"noreferrer noopener\">Belt and Road<\/a>\u201d infrastructure project, and its increasingly\u00a0<a href=\"https:\/\/www.cfr.org\/blog\/understand-chinas-aggressive-foreign-policy-look-its-domestic-politics\" target=\"_blank\" rel=\"noreferrer noopener\">assertive foreign policies<\/a>. In addition, she avoided criticizing China\u2019s mishandling of Covid-19 in the early days of 2020 and turned a blind eye to many human rights abuses in China, especially the genocide of Uyghur Muslims and suppression of the pro-democracy movement in Hong Kong.\u00a0<\/p>\n<p>Under Merkel, China became Germany\u2019s largest trading partner in 2016. German\u2019s auto industry especially relies on China \u2014 about 50 percent of German car maker Volkswagen\u2019s profit comes from China. Merkel\u2019s China policy has made Germany\u2019s economy vulnerable and helped speed up the Chinese military\u2019s modernization. <\/p>\n<p>Beijing\u00a0<a href=\"https:\/\/www.fdd.org\/analysis\/2020\/10\/14\/made-in-germany-co-opted-by-china\/\" target=\"_blank\" rel=\"noreferrer noopener\">reportedly<\/a>\u00a0focused on investments in Germany to obtain critical technologies, especially those with dual-use, meaning both civilian and military applications. For example, engines made by German companies\u00a0<a href=\"https:\/\/www.dw.com\/en\/german-engine-technology-found-in-chinese-warships-report\/a-59740301\" target=\"_blank\" rel=\"noreferrer noopener\">have powered several types of Chinese navy warships<\/a>, Deutsche Welle found.\u00a0\u00a0<\/p>\n<p>Although Merkel retired in 2021, the effects of her economic policies continued. According to a German Economic Institute (IW) <a href=\"https:\/\/tvpworld.com\/61940920\/german-economy-increasingly-dependent-on-china-report\" target=\"_blank\" rel=\"noreferrer noopener\">study<\/a>, Germany\u2019s economic dependency on China has continued to grow in 2022. \u201cChina\u2019s share of German imports rose to 12.4 percent in the first half of 2022, compared with only 3.4 percent in 2000. German imports of Chinese goods\u2026 have surged by 45.7 percent year-on-year in the comparable period of the first six months. Germany\u2019s trade deficit with the country had leapt to almost EUR 41 bn by mid-2022.\u201d<\/p>\n<h2>A Wake-Up Call<\/h2>\n<p>After Russia invaded Ukraine, Germany joined other EU nations in imposing punitive economic sanctions on Russia. Putin retaliated by weaponizing his energy supply to Europe, sending energy prices soaring and dealing a blow to the German economy.\u00a0<\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2022\/08\/19\/record-jump-in-german-producer-prices-adds-to-gloomy-outlook.html\" target=\"_blank\" rel=\"noreferrer noopener\">Inflation in Germany<\/a>\u00a0has reached a 40-year high. Suppose Putin shut off the natural gas supply to Europe, as he\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/09\/08\/putins-threatens-to-let-europe-freeze-raising-energy-rationing-risk.html\" target=\"_blank\" rel=\"noreferrer noopener\">threatened<\/a>. In that case, many\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/09\/07\/deutsche-bank-ceo-warns-of-recession-says-germany-must-cut-china-reliance.html\" target=\"_blank\" rel=\"noreferrer noopener\">predict<\/a>\u00a0an energy-induced recession in Europe is inevitable, and Germany could lose close to\u00a0<a href=\"https:\/\/edition.cnn.com\/2022\/04\/13\/economy\/german-economy-russian-gas\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">$240 billion<\/a>\u00a0in economic output over the next two years.<\/p>\n<p>The grim economic outlook, and the fact that Beijing refused to condemn Russia\u2019s invasion of Ukraine and helped Russia evade the West\u2019s economic sanctions by purchasing Russian energy and agriculture products, have become a wake-up call for Germany. Additionally, Beijing\u2019s \u201czero-Covid\u201d policy that has kept dozens of cities and millions of Chinese people in lockdown means German businesses have had limited access to the Chinese market, and the trend will continue in the foreseeable future.\u00a0<\/p>\n<p>The German Economic Institute\u00a0<a href=\"https:\/\/tvpworld.com\/61940920\/german-economy-increasingly-dependent-on-china-report\" target=\"_blank\" rel=\"noreferrer noopener\">called<\/a>\u00a0for the government to change its economic policy, \u201cspecifically a reduction in incentives for doing business with China and a shift towards more trade with other emerging markets.\u201d It also warned German businesses to \u201ccurb their dependency on China.\u201d Otherwise, companies may expose themselves to bankruptcy due to Western sanctions imposed on China in the event of the People\u2019s Liberation Army\u2019s invading Taiwan.\u00a0<\/p>\n<p>Deutsche Bank CEO Christian Sewing also\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/09\/07\/deutsche-bank-ceo-warns-of-recession-says-germany-must-cut-china-reliance.html\" target=\"_blank\" rel=\"noreferrer noopener\">warned<\/a>, \u201cWhen it comes to dependencies, we also have to face the awkward question of how to deal with China.\u201d He appealed to the German government to decouple economically from China and acknowledged such a move would \u201crequire a change no less fundamental than decoupling from Russian energy.\u201d\u00a0<\/p>\n<h2>Germany Stepping Back<\/h2>\n<p>These calls for action have reached their desired audience. Foreign Minister Annalena Baerbock\u00a0<a href=\"https:\/\/www.reuters.com\/markets\/exclusive-german-economy-ministry-reviews-measures-curb-china-business-2022-09-08\/\" target=\"_blank\" rel=\"noreferrer noopener\">acknowledged<\/a>\u00a0Germany couldn\u2019t afford to \u201cjust behave following the motto \u2018business first,\u2019 without taking into account the long-term risks and dependencies.\u201d<\/p>\n<p>Reuters\u00a0<a href=\"https:\/\/www.reuters.com\/markets\/exclusive-german-economy-ministry-reviews-measures-curb-china-business-2022-09-08\/\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a>s\u00a0that Germany\u2019s economic ministry is considering\u00a0<a href=\"https:\/\/www.reuters.com\/markets\/exclusive-german-economy-ministry-reviews-measures-curb-china-business-2022-09-08\/\" target=\"_blank\" rel=\"noreferrer noopener\">several actions<\/a>\u00a0to cut Germany\u2019s reliance on China, including reducing or scrapping investment and export guarantees for China and no longer promoting trade fairs and manager training there. It is also contemplating screening not just Chinese investments in Germany but also German investments in China. It also might submit a complaint to the World Trade Organization about unfair Chinese trade practices, together with the Group of Seven, an intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.<\/p>\n<p>While Germany is waking up to the risks of economic dependency on authoritarian regimes, the Biden administration has deepened our nation\u2019s economic reliance on China with a green revolution that centers around replacing fossil fuels with solar and wind, and gas-powered cars with electric vehicles (EVs). China dominates the global supply chain of raw materials and parts for EV batteries, solar panels, and wind turbines. The nation has been able to keep the manufacturing cost low by burning coal and employing forced labor from Uyghur and other ethnic minorities. <\/p>\n<p>Even\u00a0<a href=\"https:\/\/www.politico.com\/newsletters\/the-long-game\/2021\/01\/26\/bidens-biggest-clean-energy-partner-china-491531\" target=\"_blank\" rel=\"noreferrer noopener\">Politico<\/a>\u00a0has had to admit the dirty truth: \u201cThe U.S path to clean energy goes straight through China.\u201d Germany\u2019s economic woes should serve as a timely warning to the Biden administration that relying on an authoritarian regime is both dangerous and foolish.<\/p>\n<hr class=\"wp-block-separator\" \/>\n<div class=\"article-author-description fst-italic\">\n  Helen Raleigh, CFA, is an American entrepreneur, writer, and speaker. She&#8217;s a senior contributor at The Federalist. Her writings appear in other national media, including The Wall Street Journal and Fox News.  Helen is the author of several books, including &#8220;<a href=\"https:\/\/www.amazon.com\/Confucius-Never-Said-Helen-Raleigh\/dp\/1499185278\/ref=sr_1_1?dchild=1&amp;keywords=Helen+Raleigh+Confucius+Never+Said&amp;qid=1606079469&amp;sr=8-1\">Confucius Never Said<\/a>&#8221; and \u201c<a href=\"https:\/\/www.amazon.com\/Backlash-How-Chinas-Aggression-Backfired\/dp\/1736008501\/ref=tmm_pap_swatch_0?_encoding=UTF8&amp;qid=1606006113&amp;sr=8-1\">Backlash: How Communist China&#8217;s Aggression Has Backfired<\/a>.&#8221; Follow her on Parler and Twitter: @HRaleighspeaks.<\/div>\n<div class=\"article-comments mt-30 mt-sm-60\">\n<div class=\"article-comments-container d-flex flex-column align-items-center py-30\">\n    <img loading=\"lazy\" decoding=\"async\" width=\"110\" height=\"106\" src=\"https:\/\/thefederalist.com\/wp-content\/uploads\/2021\/12\/fdrlst-mark.svg\" class=\"img-fluid mb-20\" alt=\"The Federalist logo eagle mark\" \/>    <\/p>\n<p>Unlock commenting by joining the Federalist Community.<\/p>\n<p>    <a href=\"https:\/\/thefederalist.com\/plans\/pricing\/\" class=\"btn btn-on-white\">Subscribe<\/a>  <\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Germany is\u00a0reportedly\u00a0working on reducing the nation\u2019s economic dependency on Communist China due to concerns about \u201chuman rights abuses and the risks of being beholden to an increasingly assertive authoritarian state,\u201d<\/p>\n","protected":false},"author":536,"featured_media":1640717,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1640713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1640713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/536"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1640713"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1640713\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1640717"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1640713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1640713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1640713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}