Growing Demand for Digital Sovereignty in Germany
3 Min. Reading time
German companies are increasingly dependent on the import of digital technologies and services from the Far East and America, but are now advocating for greater digital sovereignty. Their main concern is the possible developments in the USA under Donald Trump.
The German economy looks on with concern at Donald Trump’s second presidency in the USA. Not only the announced import tariffs could negatively affect companies and their business here. The digital sector also faces trouble. According to Bitkom, the German economy is 81 percent dependent on the import of digital technologies and services from the USA.
There are already some initiatives and countermeasures to break this dependence. Nine out of ten German companies also demand, according to Bitkom, an increase in Germany’s digital competitiveness and that of the German economy. The question, however, is how quickly the measures would take effect in a real scenario and whether it would even be possible to replace leading US providers with German or European ones.
US imports still indispensable
41 percent of the German companies surveyed on behalf of Bitkom consider themselves strongly dependent on US imports. 87 percent import digital devices and services from the United States, while 60 percent also export digital goods and services across the Atlantic. About half of the companies each feel compelled by Trump’s electoral victory to adjust their business strategies or change their supply chains.
95 percent of the more than 600 respondents from companies with over 20 employees across industries demand that Germany become more independent from the USA. German companies view China with similar criticism as they do the USA under Trump: 79 percent see themselves dependent on digital imports from the Middle Kingdom.
Bitkom President Dr. Ralf Wintergerst sees Trump’s return to the White House as „a challenge for Germany and Europe“ and says: „While the USA will remain one of our most important partners, we must from now on position ourselves stronger, more resilient and opportunity‑oriented, and become technologically as well as economically more independent. The new federal government must put the economy back at the centre of policy and make digital sovereignty a top‑topic.“
Digital imports are vital for survival
He further emphasizes: “Digital sovereignty is a country that possesses its own substantial capabilities in digital key technologies and can independently decide from which countries it sources digital technologies. The German economy needs strong, trustworthy partners for digital transformation. At the same time, we must become more digitally independent to avoid being vulnerable to extortion.”
According to its industry association, without digital imports every second company would not survive a year. 17 percent, in its own assessment, would be viable for only half a year, 36 percent for just seven to 12 months, 39 percent for 13 to 24 months. Only 3 percent of the surveyed companies could endure longer without digital imports.
96 percent of firms depend on them. At the top of the import list are end devices such as smartphones and notebooks, with 90 percent imported. In second place come software applications at 75 percent, followed closely by cybersecurity products at 72 percent. Digital components such as hardware parts, chips and other semiconductor products are 69 percent foreign, digital devices and machines for production, analysis and services two‑thirds (66 percent), and digital services including app development and IT consulting 50 percent.
“87 percent import digital devices and services from the United States, but 60 percent also export digital goods and services across the Atlantic.”
Trust in other EU countries is highest
The majority of imports come with over 40 percent each of “strong dependence” from the USA and China. Together, the USA and other parts of the EU account for 87 percent of imports of digital technologies and services, China is in third place with 78 percent, Taiwan far behind with 41 percent, even though many Taiwanese factories are in China. Japan is in the race with 36 percent, the United Kingdom (UK) with 34 percent, and India already at 20 percent.
Problematic are, among others, imports from crisis and war zones such as Ukraine or Israel, which in individual cases account for 12 percent or 9 percent in German companies.
Digital exports of the German economy go 92 percent to other EU states, still 60 percent to the USA, 55 percent to Japan and 48 percent each to India and the UK, and 42 percent to Taiwan.
The highest trust in Germany as importers is enjoyed by other EU countries with 97 percent, followed by Japan with 73 percent. In contrast, only just under half of respondents trust the USA, and trust in China is markedly lower at 44 percent.
Frequently Asked Questions
How dependent is the German economy on digital imports from the USA?
81 percent of digital technologies and services in Germany are imported from the USA. 87 percent of companies source digital devices and services from the USA.
What impact would the loss of digital imports have on German companies?
Without digital imports, every second company could not survive more than a year. Only 3 percent of firms would be viable in the long term.
Which digital products are most frequently imported from the USA?
The most frequently imported items are end devices such as smartphones and notebooks (90 percent), as well as software applications (75 percent) and cybersecurity products (72 percent).
How are German companies reacting to the re‑election of Donald Trump?
Approximately half of the companies need to adjust their business strategies or supply chains. 95 percent call for greater independence from the USA.
Which countries enjoy the highest trust in Germany as digital partners?
Other EU countries enjoy the highest trust at 97 percent, followed by Japan at 70 percent. The USA and China are regarded as riskier.
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