Germany needs to diversify its international business partners and focus on new regions of the world. Monika Schnitzer, chief economic adviser to the German government, told Reuters, arguing that German companies should think about how to become less dependent on China.

Asia is more than just China, and America is more than just the United States, Schnitzer said adding that it also favors a closer relationship between European countries.

She considers the U.S. Inflation Reduction Act discriminatory because only local companies or those represented in trade agreements benefit from U.S. subsidies. Germany should not act alone and counter-subsidize, she said.

This is wrong because we see Europe as a common market and we should act together, Schnitzer said.

She noted the importance of the U.S. as a trading partner for Germany and advocated a new attempt at a free trade agreement between the European Union and the United States.