Export leaders

China rose through the ranks last year and became the world's top exporter. The People's Republic exported goods worth a total of 1,070 billion dollars (749.7 billion euros), according to figures published by Beijing a few days ago.

Now, data from the German statistical office in Wiesbaden shows that German exports for the same period total some 734.6 billion euros ($1,052 billion). Germany, which for years took pride in its position as "world champion exporter", has now lost the top spot, falling roughly 15 billion euros behind.

But is any German business leader now looking for a new sword, so that he might fall on it in shame? Most likely not, for this comparison between Germany and China is nothing more than an exaggerated obsession within the media.

People love the highest, the fastest, the furthest, the most expensive - they love the champions, and they love the world champions even more. Stories like this always sell well - even though they merely play on people's love of wealth and success, and have little relevance in the real world.

In reality, there are two export champions -China and Germany. Both supply the rest of the world with their products - and they do each other no harm in the process.

Colleagues, not competitors

On the contrary, the two countries are masters in the art of the international division of labor. They complement one another rather than compete.

The meaning of this quickly becomes clear if you take a closer look at the structure and direction of Germany and China's export patterns. Germany - for the most part - provides the world with investment goods, durable products like machines, industrial equipment and performance cars. China produces and sells consumer products such as electronic equipment, textiles, clothing and toys.

Looking at the export destinations, one could say - albeit with a dash of exaggeration - that Germany sells China the machines and equipment necessary to produce the consumer goods that people in the US then buy on credit.

So there are really two world champions, and at least one of those is supported by a third - namely the world leader in credit-based consumption, the United States of America. China, in particular, has bought into this system of mutual dependency, for better or worse.

One could say, the two countries have taken each other hostage. China is dependent on its exports to the US, and so must reluctantly resign itself to piling up vast amounts of debt bonds, the value of which can be debated.

The US, for its part, has become dependent on its imports from China, and has become Beijing's biggest creditor in the process. A devaluation of the dollar and an increase in the Chinese yen's value would be welcomed by the Americans, as this would help reduce somewhat the massive imbalance in trade between the two countries. However, the US can only stand by and watch as China keeps its currency's value artificially low, in order to protect its export industry.

Germany is far better positioned than either of these two, even though it has now lost its title as the world's leading exporter. Germany sells its exports to many different countries, and is not dependent on any single customer. For that reason, Germany has no reason to be unhappy that it now occupies the runner's up slot in the world's export league table.

Rolf Wenkel is an editor with DW-World's business section (msh)

Editor: Susan Houlton