China overtakes the US as Germany’s top trading partner | DW News

Key Concepts

• Trade Shift: Germany's top trading partner has shifted from the US to China.
• Trade Figures (2025):
  • Germany-China Trade: ~€163.4 billion
  • Germany-US Trade: ~€162.8 billion
• Import/Export Trends:
  • Imports from China: Up >8%
  • Imports from US: Up (specific figure not provided)
  • Exports to China: Down >13%
  • Exports to US: Down 7%
• Drivers of the Shift: US tariffs and American regulations.
• Impacted German Industries: Automotive, machinery, chemicals, electronics, pharmaceuticals.
• Key German Imports from China: Batteries, machinery, metal goods, chemical inputs.
• Consequences: Increased dependence on Chinese imports in key industries.
• Business Group Recommendations: Tougher product standards, market checks, innovation, new trade deals.

Germany's Shifting Trade Landscape: China Overtakes the US

Recent data for 2025 indicates a significant shift in Germany's international trade relationships, with the People's Republic of China now surpassing the United States as Germany's top trading partner. This marks a reversal from the previous year's standing.

Trade Volume and Trends

The total trade volume between Germany and China has reached approximately €163.4 billion, placing it ahead of the €162.8 billion recorded for trade with the US. While imports have increased from both countries, the growth from China has been particularly notable, exceeding 8%. Conversely, German exports have experienced a decline to both major trading partners. Exports to China have fallen by more than 13%, and exports to the US have decreased by 7%.

Drivers of the Trade Flip

A primary factor contributing to this trade realignment is the imposition of US tariffs and the implementation of American regulations. These measures have exerted considerable pressure on Germany's export-oriented industries, which are heavily reliant on international markets.

Impact on German Industry

Germany's export heavyweights, including sectors such as automotive, machinery, chemicals, electronics, and pharmaceuticals, have been particularly affected by the cooling US demand and the impact of tariffs. As US markets become less accessible or less attractive due to these policies, China is increasingly filling the void.

Increased Dependence on Chinese Imports

The trend of rising German imports from China is particularly evident in specific product categories. Key imports now include batteries, machinery, metal goods, and chemical inputs. This surge in imports from China is leading to an increased dependence on Chinese supply chains within crucial German industries.

Industry Perspectives and Recommendations

In response to these developments, business groups are cautioning against hasty protectionist measures. Instead, they advocate for a strategic approach that includes:

• Tougher Product Standards: Implementing more stringent quality and safety regulations for imported goods.
• Market Checks: Enhancing oversight and verification processes within the market.
• Innovation: Fostering domestic innovation to maintain competitiveness.
• Fresh Trade Deals: Negotiating new trade agreements to diversify markets and secure favorable terms.

Conclusion

The shift in Germany's trade hierarchy, with China now leading, presents both challenges and opportunities. The increased reliance on Chinese imports, coupled with headwinds in the US market, necessitates a proactive and strategic response from German industry and policymakers. The emphasis on strengthening domestic capabilities and diversifying trade relationships, rather than resorting to protectionism, is highlighted as the path forward.