Germany's Trade Deficit With China Widens to €55 Billion

Germany's trade deficit with China widened to approximately €55 billion in the first half of 2026, an increase from the €40 billion recorded during the same period in 2025. Preliminary data from Germany Trade & Invest shows that German exports to China fell more than 12% year-on-year to just under €37 billion, causing China to drop to Germany's ninth-largest export market. During the same period, German imports from China rose 8.9% to €91.8 billion.

Economic analysts attribute this shift to a weak domestic economy in China, a property crisis, and a strategic pivot by the Chinese government toward domestic value chains. While China remains the top overall trading partner for Germany, the German manufacturing sector is facing simultaneous pressure from Chinese competition and protectionist tariffs imposed by United States President Donald Trump.

These combined pressures have eroded the competitiveness of the Made in Germany brand. The resulting economic strain has led to significant job cuts at major industrial firms, including the Volkswagen Group.