Key facts
- Germany's trade deficit with China grew to approximately €55 billion in the first half of 2026.
- German exports to China decreased by over 12% year-on-year to under €37 billion.
- German imports from China increased by 8.9% to €91.8 billion.
- China is now the ninth-largest market for German goods, a significant drop from its second-place position in 2021.
- China became Germany's top trading partner in 2025, surpassing the United States.
Germany's trade deficit with China has significantly widened in the first half of 2026, reaching approximately €55 billion, according to preliminary data from Germany Trade & Invest (GTAI). This widening gap is attributed to a sharp decline in German exports to China, which fell over 12% year-on-year to just under €37 billion, while imports from China rose by 8.9% to €91.8 billion.
China's reduced reliance on European imports, driven by a focus on domestic value chains and its own economic challenges, has seen it drop to become only the ninth-largest market for German goods, a stark contrast to its position as the second-largest in 2021. This shift underscores China's increasing technological independence and self-sufficiency.
The overall trade volume between Germany and China in the first half of 2026 exceeded €128 billion, surpassing trade with the United States. China had become Germany's top trading partner in 2025, following the reintroduction of protectionist tariff policies by U.S. President Donald Trump, which had previously eroded German exports to the U.S.
Despite the challenges in the Chinese market, overall German exports saw a 3.7% increase to €817 billion in the first half of the year, supported by global growth. However, experts suggest that the 'Made in Germany' brand needs to adapt to the evolving global economic landscape.