Key facts
- Germany's trade deficit with Asia-Pacific is projected to reach a record €146 billion in 2026.
- Exports to Asia-Pacific are forecast to fall 3.2% this year to €185.3 billion.
- Imports from Asia-Pacific are forecast to rise 6.4% this year to €330.9 billion.
- German machinery exports to China fell 18% in the first seven months of 2026.
- Automotive exports to China dropped 30% in the same period.
- German car sales in China have nearly halved from a peak of over 5 million vehicles.
Germany's trade deficit with Asia-Pacific is projected to reach a record €146 billion ($163 billion) in 2026, driven by declining exports to China and rising imports from the region, according to a report by Germany Trade & Invest (GTAI). Exports to 29 core Asia-Pacific economies are expected to fall 3.2% this year to €185.3 billion, while imports are forecast to rise 6.4% to €330.9 billion. German machinery exports to China fell 18% and automotive exports dropped 30% in the first seven months of 2026, as Chinese companies expand domestic production. German Chancellor Friedrich Merz is visiting Japan, South Korea and Singapore, calling for a strategic alliance among middle powers. While China's demand weakens, India and Southeast Asian nations are becoming more important markets and suppliers for German companies.