Germany’s trade deficit with China grew in the first half of 2026, according to preliminary data from the state-run agency Germany Trade & Invest (GTAI). German exports to China fell over 12% year-on-year to just under €37 billion between January and June, while Chinese firms cut reliance on European imports.
Trade Deficit Widens
The trade deficit between Germany and China widened to €55 billion in the first half of 2026, up from €40 billion in the same period last year. German imports from China rose 8.9% to €91.8 billion over the period, with total trade reaching over €128 billion.
According to GTAI East Asia expert Corinne Abele, the reasons for declining exports to China are the weak domestic economy and increasing focus on domestic value chains. German firms are now producing more inside China itself, while China’s property crisis and cash-strapped regional governments are curbing investment.
Commerzbank economist Vincent Stamer noted that China’s diminishing reliance on Germany shows it is becoming more independent of Western powers and catching up technologically. China overtook the U.S. as Germany’s top trading partner in 2025 after U.S. President Donald Trump launched protectionist tariff policies that have eroded German exports to the United States.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
