German trade deficit with China grows as Beijing relies less on European industry

In the first half of 2026, Germany experienced a widening trade deficit with China, despite China remaining its largest trade partner, according to preliminary data from state-run agency Germany Trade & Invest (GTAI). German exports to China fell over 12% year-on-year to almost €37 billion, as Chinese firms reduced their reliance on European imports, making China only the ninth-largest market for German goods.

Previously, China was the second-largest export market for Germany in 2021, with Germany selling China merchandise worth €104 billion. Currently, Chinese manufacturing is outpacing German industry, leading to job cuts at key German firms like Volkswagen. However, China's imports to Germany rose by 8.9% to €91.8 billion over the same period, resulting in a total trade volume of over €128 billion.

The decline in German exports to China is attributed to a weak domestic economy and China's increasing focus on domestic value chains. Smaller economies like Austria and Switzerland bought more German goods than China in 2026. China's diminishing dependence on Germany suggests it is becoming more independent and technologically advanced.

Commerzbank economist Vincent Stamer noted that China may overtake the U.S. as Germany's top trading partner in the future, following the U.S. re-emergence of protectionist tariffs. Germany's exports still grew 3.7% to €817 billion in the first half of 2026, but the 'Made in Germany' brand needs to reinvent itself.