Easy to forget that Germany has much more industry than automotive as this article states....
https://www.deutschland.de/en/topic/business/germanys-industry-the-most-important-facts-and-figures#:~:text=Four sectors dominate German industry,engineering%2C chemical and electrical industry.
Whilst it looks like the German Automotive sector has failed spectacularly to gear up to the transition to EVs and now the big German car makers are spending billions buying up bit of the Chinese automotive industry and setting up joint ventures with Chinese government companies like SAIC the other big parts of the German industry and also trying to update their manufacturing technology but not without problems. Siemens are having some really problems with quality and post install repairs on their wind turbines and their share price has fallen hugely but their are some sectors that are doing quite well and I see that on a daily basis. For a country with relatively low natural resources thy have to innovate and build their mechanical engineering side, chemicals, pharma. Partnering with South Korean, Japanese and Taiwanese companies will help Germany fight China economically.
China, I think, will actually be more concerned by what weather, earthquakes and their own property market is doing than competing with "The West" which China's move to No 1 economic power is just happening as something they have been building for more than fifty years and their success in the flagship automotive sector is evidence of their industrial might but I think their focus is improving their own country, ie city pollution, energy independence with their massive dominance in solar and now wind and there are few industries left they are not leading ie aerospace, but the are working on that, maybe pharma and they need all the improvements they can make in the solar and wind sector to help clean up the world as they are the biggest contributor to carbon pollution input. They have seen record high temperatures, their water table is lowering causing building collapses, massive damaging storms due to the sea warming so the Chinese will continue to surge ahead in technology over the West, I believe not as a race with The West but to tackle their own environmental problems.
I expect South Korean, Japanese and Taiwanese countries and their companies will continue to want to work with both Europe and the US and whilst they will also do massive investment in China as well they will like to see success in Western countries so they do not have too many of their eggs in the Chinese basket. Audi/VW and many other Western automotive companies are seeing their profits disappear as the fail in China and must look for alliances where ever they can. Taiwan will continue to want protection from China and massive investments like this one can only help promote Western countries to help protect such countries from China's wish to re-integrate Taiwan in to China mainland control.
Good luck Germany and mainland Europe in maintaining a strong manufacturing sector, probably a percentage of economy that is more likely to go down than up as the Asian nations power on through the 21st century but they, like the UK, can only do its best to retain as best as possible what it can but as with automotive as you find that you have to go for components to Asian countries you gradually lose control of the overall process and then the only course is one of continuing decline and one is left with businesses like tourism, agriculture/food, leisure, sport and anything else the Asian might want to buy of us Western is exchange for their manufacturing sector goods ie automotive and most other goods we want ie mobile phones, computers, electronics etc.. Empires rise and fall.
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What is the manufacturing sector’s share of economic output?
26.6 percent was the share of gross value added by the manufacturing sector in Germany in 2021. For comparison: in France, the share was 16.8 percent, in the USA 18.4 percent and in Japan 29 percent.
What is the turnover of the manufacturing sector in Germany?
2,096 billion euros was the turnover of companies in the manufacturing sector in 2020. The automotive industry led the way with 459 billion euros.
What are the largest sectors in Germany?
Four sectors dominate German industry: the automotive, mechanical engineering, chemical and electrical industry. Global players are Volkswagen, Daimler, BMW (all automotive), BASF, the world’s largest chemical company with around 118,000 employees, and Siemens (electrical). With 1.1 million employees, mechanical engineering is the largest industry in Germany, but it is dominated by SMEs.