Germany's trade gap with China widens to €90 billion as Reiche visits

Germany's widening trade deficit with China — now at €90 billion — took center stage as Economy Minister Katherina Reiche arrived in Beijing for three days of talks.

Germany's trade deficit with China swelled to roughly €90 billion in 2025 as exports slumped 10 percent to €80 billion while imports climbed to €170 billion, data from the German economy ministry show.

"In times of global uncertainty, we need dialogue, trust and robust partnerships," Reiche said in a statement before meeting Chinese Commerce Minister Wang Wentao and Vice Premier He Lifeng in Beijing.

The visit comes as Berlin pushes back against calls from some EU member states for a tougher stance on China, with Reiche urging the bloc to avoid measures that could harm German exports. Chancellor Friedrich Merz raised the same trade imbalance during his own visit to China in February.

The shifting trade dynamic — once a reliable surplus for Germany — now threatens Europe's largest economy, which has stagnated in recent years as Chinese manufacturers compete directly in automotive and machinery sectors that were long German strongholds.

A Relationship Reversed

For decades, Germany ran consistent trade surpluses with China, exporting premium cars, factory equipment, and chemical products to a fast-growing market. That relationship has inverted. Chinese exports to Germany — spanning EVs, solar panels, and industrial machinery — have surged, while German goods face stiffer competition both in China and globally.

The €90 billion gap represents a swing of more than €100 billion from the pre-pandemic era, when Germany's trade with China was roughly balanced. The shift mirrors a broader trend across Europe, where Chinese imports have grown faster than exports in 14 of the EU's top 20 trading categories since 2020, according to Eurostat data.

EU Divisions on China Policy

Reiche's visit underscores a growing divide within the EU over how to manage economic ties with Beijing. Some member states, led by France, have pushed for anti-subsidy investigations and higher tariffs on Chinese goods, particularly EVs and green technology. Germany has resisted, warning that such measures could trigger retaliation and hurt its export-dependent economy.

The German economy ministry noted that any new trade barriers could further erode the country's export competitiveness at a time when its industrial sector is already under pressure from high energy costs and slowing global demand. The next flashpoint comes as the EU considers whether to impose provisional tariffs on Chinese EVs, a decision expected in the coming months. Germany's auto industry — which accounts for roughly 5 percent of the country's GDP and employs more than 800,000 people — would be among the most exposed sectors.

This article is for informational purposes only and does not constitute investment advice.