Key facts
- Germany's trade deficit with China widened in the first half of 2026.
- German exports to China decreased by over 12% year-on-year.
- Imports from China increased by 8.9% to €91.8 billion.
- The trade deficit reached approximately €55 billion.
- China remains Germany's top trade partner.
Germany's trade deficit with China has significantly widened in the first half of 2026, with exports to China falling over 12% year-on-year. Despite this, China maintained its position as Germany's top trade partner. Imports from China, however, rose by 8.9% to €91.8 billion, contributing to a trade gap of approximately €55 billion.
German exports to China dropped to just under €37 billion ($42.8 billion) between January and June, as Chinese firms reduce their reliance on European imports. This shift has made China only the ninth-largest market for German goods, a notable decline from 2021 when it was the second-largest export market, with sales reaching €104 billion that year.
Experts attribute the decline in German exports to China to a weak domestic economy and an increasing focus by China on its own value chains. German firms are also increasing their production within China. Factors such as China's property crisis and strained regional government finances are further curbing investment.
In contrast, German imports from China have grown, with total trade between the two nations exceeding €128 billion, surpassing trade with the United States. This trend highlights China's growing independence from Western powers and its technological advancements.
The report also notes that China's protectionist tariff policies, implemented after Donald Trump's return to the White House, have previously eroded German exports to the U.S. While the U.S. remains a significant foreign market for Germany, exports there fell by about 6% through June. Meanwhile, German imports from the U.S. saw a 7.1% increase.