China overtakes US as Germany’s top trading partner | Global economy
China has overtaken the US as Germany’s biggest trading partner, figures show, as Chancellor Friedrich Merz prepares for his first visit to Beijing since taking office.
Merz will travel to China on Tuesday and be welcomed with military honors by Premier Li Qiang in Beijing on Wednesday, then meet President Xi Jinping for dinner, spokesman Sebastian Hille said.
Germany’s Federal Statistical Office showed in figures published on Friday that China has regained the top spot as the country’s most important market, with €251bn (£219bn) in trade in 2025; This figure was up 2.2% from 2024, when the United States became the country’s leading export destination.
Germany imported approximately €170.6 billion worth of goods from China in 2025; This is more than twice the value of exports from Germany to China (€81.3 billion).
Trade with the US was worth €240 billion; Donald Trump’s controversial tariffs were partly a potential factor in the 5% decline in trade.
Hill said Merz will also visit the Forbidden City, Chinese company Unitree Robotics, German automobile company Mercedes-Benz and turbine manufacturer Siemens Energy during his two-day trip to China. He will also visit the eastern city of Hangzhou in China.
Merz is expected to bring up many issues during his visit, especially the war in Ukraine, human rights and trade.
The EU is fighting to limit China’s overheated production with tariffs on electric vehicles imported into the EU in 2024; These tariffs have little impact on sales, with tariffs threatened on steel through steel measures later this year.
Germany’s trade relations with China are complex; automobile companies have a significant manufacturing presence in the country. Volkswagen calls this the “second domestic market”, and BMW and Mercedes Benz also rely heavily on sales in the country for their economic success.
BMW CEO Oliver Zipse will be one of 30 business representatives who will accompany Merz on the journey. “Complex global challenges can only be solved by working together,” Zipse told Reuters. “With his visit to China, the Chancellor is sending a strong signal for dialogue and cooperation.”
The EU wants and has made several attempts to get rid of China, which dominates supplies of rare earths, refined critical minerals including lithium needed for EV batteries, and permanent magnets used in everything from cars and refrigerators to military jets.
Germany’s need to support its auto industry, one of the country’s largest employers, has made its approach to barriers to Chinese imports less black and white.
He voted against the EU’s decision to impose tariffs on Chinese electric vehicles in 2024, and this month Exemption from EU import duties Purchase of a Chinese-made Volkswagen Cupra Tavascan SUV in exchange for commitments on the vehicle’s minimum price.
