China Reclaims Top Trading Partner Status with Germany

Germany’s trade with China is projected to reach €251.8 billion in 2025, a 2.1% increase, solidifying China’s position as the most important market for Europe’s largest economy. This marks a reversal from 2024, when the United States briefly held the top spot, according to data released by the German Federal Statistical Office (Destatis) .

Trade Figures and Trends

In 2025, Germany imported approximately €170.6 billion worth of goods from China, significantly exceeding the value of its exports to the Chinese market, which totaled €81.3 billion . Meanwhile, trade between Germany and the United States reached €240.5 billion, a decrease of around 5%, influenced in part by tariffs implemented during the Trump administration .

Merz’s Visit to China

German Chancellor Friedrich Merz is scheduled to visit China, with plans to visit the Forbidden City, Unitree Robotics, and facilities of German companies like Mercedes-Benz and Siemens Energy. His itinerary also includes a trip to Hangzhou .

EU Trade Policies and China

This visit occurs as the European Union attempts to address the influx of Chinese products, including the imposition of customs duties on electric vehicles starting in 2024. However, these measures have had limited impact on sales. The EU is also considering protectionist measures for steel, potentially to be implemented later in the year .

German Automotive Industry and China

German-Chinese trade relations are particularly shaped by the significant presence of German automotive manufacturers in the Chinese market. Volkswagen considers China its “second domestic market,” and BMW and Mercedes-Benz heavily rely on Chinese sales for growth. The CEO of BMW has emphasized the importance of cooperation in addressing global challenges, and the German Chancellor’s visit signals a commitment to dialogue .

Supply Chain Diversification

Despite its dependence on the Chinese market, Germany and the EU are actively seeking to reduce their reliance on Chinese supplies of rare earths and critical minerals – essential components for electric vehicle batteries and military technologies. However, the need to protect its automotive industry has led Berlin to adopt a cautious approach to trade barriers with China, as demonstrated by Germany’s vote against EU tariffs on Chinese electric vehicles in 2024 and the exemption of the Cupra Tavascan SUV from import tariffs .