Germany-China Relations: 2026 Trade Reset & Industrial Impact

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Total Trade 2025

€252.3B

China returns as #1 Partner

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Trade Deficit

€90.0B

β–² €30B increase in 12 months

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Diplomatic Goal

Fair Reset

Multi-ministerial visits planned

The Widening Export-Import Gap

As Chancellor Merz seeks “fair cooperation,” data reveals a significant divergence: Germany is importing more while its industrial exports struggle to compete in the Chinese market.

Import Surge (+8.8%)

German consumers and businesses are increasingly reliant on Chinese-made goods and components.

Export Drop (-9.7%)

De-industrialization pressures and local Chinese competition are hollowing out traditional German leads.

Industrial Fallout

120,000

German Jobs Shed in 2025

“We have specific concerns… We want to improve and make cooperation fair.” β€” Friedrich Merz

The EV Transition

China is setting the pace in electromobility and AI, creating “competitive distortions” for German automakers.

CHINESE EV MARKET ADVANTAGE LEADERS

GERMAN AUTO BRAND RECOGNITION STABLE

A New Multilateral Order

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USA

“Unpredictable Partner”

Tariff policy & protectionism forcing European reassessment.

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GERMANY

Export Dependency

Seeking global partners to offset US tariff impacts.

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CHINA

“Strategic Rival”

Advocating for free trade while defining new global rules.

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