Germany's trade deficit with China widened to around €55 billion in the first half of 2026, up from €40 billion for the same period in 2025 [1, 2, 3, 4, 5, 6, 7]. German exports to China fell more than 12% year-on-year to just under €37 billion, while imports from China increased 8.9% to about €92 billion [1, 2, 3, 4, 5, 6, 7]. Overall bilateral trade between the two countries exceeded €128 billion in the six months through June, surpassing Germany's trade with the US by €3–30 billion [1, 2, 3, 4, 5, 6, 7].
China became Germany's top trading partner in 2025, overtaking the United States [1, 2, 3, 4, 5, 6, 7]. However, in 2026 China dropped to ninth place among Germany's biggest export markets as smaller neighbors like Austria and Switzerland outpaced China in buying German goods [1, 2, 3, 4, 5, 6, 7]. Despite weak exports to China and the US, Germany's total exports grew 3.7% year-on-year to €817 billion in the first half of 2026 [1, 2, 3, 4, 5, 6, 7].
Experts cited multiple reasons for the decline in German exports to China. Germany Trade & Invest's East Asia expert Corinne Abele said, "The reasons for declining exports to China are the weak domestic economy and increasing (Chinese) focus on domestic value chains." She added that "German companies are now producing more inside China itself, while China’s property crisis and cash-strapped regional governments are curbing investment" [1, 2]. Commerzbank economist Vincent Stamer said, "China’s diminishing reliance on Germany showed it is becoming more independent of Western powers and catching up technologically." He also noted, "The 'Made in Germany' brand must still reinvent itself." [1]
German exports to the US fell about 6% year-on-year to just over €74 billion in the first half of 2026, while imports from the US rose 7.1% to nearly €51 billion [1, 2, 3, 6, 7]. German manufacturers are under pressure from US tariffs and strong Chinese competition, with key firms like Volkswagen reporting significant job cuts [1, 2, 3, 6].
China’s exports to Germany continued to grow strongly, rising about 18.8% year-to-date in 2026, increasing the trade imbalance [2, 3].
The next major data release on Germany's trade will come with the full year 2026 figures, which will show whether trends of falling exports to China and rising imports continue.
