Exports: Exclusive figures: Trade balance deficit with China rises for the first time to more than 100 billion euros
Before the EU summit, new IW figures show the severity of the China shock 2.0. All core industries in the manufacturing sector are suffering from dwindling exports. One is particularly hard hit.
The EU summit on Thursday may mark a significant shift in the bloc's China policy, with leaders likely to agree on strong defensive measures to protect the European economy from cheap Chinese imports. A study by the Institute of German Economics (IW) found that Germany's trade deficit with China is expected to exceed €100 billion this year, a 90 billion euro increase from 2019, with the automotive, electrical, and mechanical engineering sectors being particularly hard hit.
The study's author, Jürgen Matthes, is calling for compensatory tariffs against Chinese trade distortions, a move that may be discussed by EU leaders. China's economic weakness has led to a surge in exports, with the country accused of unfair trade practices, including massive subsidies and an artificially low currency. Germany's trade surplus with China has turned into a deficit, with exports to China expected to be 25% lower in 2026 than in 2019, while imports from China are set to rise by 62%.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
