Germany's Economy Minister Peter Altmaier underlined the risks to his country's own economy if a trade conflict between the U.S. and China is left unresolved.

Speaking at the World Economic Forum in Davos, Altmaier noted a recent slip in German growth but insisted the country was in a "solid, sound condition." Nonetheless he noted that the "looming conflicts" between China and the U.S. could be damaging for his country and the wider European Union (EU).

"To be frank and honest even a trade conflict between China and the U.S. would harm the European economy because there are a number of European and German companies vested in China producing for the American market, or vested in the U.S. producing German cars ... exporting to the Chinese market," he told CNBC Wednesday evening.

"And all of this is at stake if we cannot find a good solution."