MNI BRIEF: German Firms Looking To Reduce China Links: Ifo

German manufacturing firms would like to reduce dependence on supply chain links to China, an Ifo institute survey published Thursday finds.

“In German manufacturing, 46 percent of all companies say they source significant inputs from China. Of these companies, almost one in two is planning to reduce these imports from China in the future,” Lisandra Flach, Director of the Ifo Center for International Economics, said. China, Flach noted, plays an important "but by no means dominant" role as a supplier and sales market for Germany.

Flach called on Berlin and Brussels to push harder to finalise trade deals currently being negotiated to help German -- and wider EU -- firms diversify their sources of supply more, reduce costs and risks in logistics, and be prepared for political uncertainty. China and EU officials meet Friday to discuss matters, although trade may be further down the list than normally.