The latest data released by the German think - tank IFO reveals that in October, around 10.4% of enterprises in Germany's electronics and optical product manufacturing sector encountered bottlenecks in raw material supply. This marks a substantial rise compared to 7.0% in July and 3.8% in April.

This situation mainly arises from the tightening of global control measures on rare earths. Rare earths are crucial for many high - tech products, and the stricter controls have made it increasingly difficult for German companies in the relevant sectors to obtain key raw materials.

Klaus Wohlrabe, the head of IFO surveys, emphasized that rare earth controls and trade restrictions have already cast a shadow over the supply chain. He warned that if this trend persists, it could further impede economic growth.

At present, only 5.5% of German manufacturing enterprises report facing supply issues. However, the challenges in the electronics and optics industry stand out prominently.

European policymakers are taking steps to reduce dependence by diversifying supply chains and boosting domestic rare earth production. Yet, these measures will require a significant amount of time to yield results. In the short run, the German industry still confronts the risk of supply chain disruptions.