Germany's trade deficit with China widened in the first half of 2026, according to data from the Federal Statistical Office (Destatis). The deficit reached €32.5 billion, up from €28.1 billion in the same period last year, as imports from China grew faster than exports.
Imports from China rose by 8.2% year-on-year to €89.4 billion, driven by strong demand for electronics, machinery, and chemical products. Meanwhile, exports to China increased by only 3.1% to €56.9 billion, reflecting weaker Chinese demand for German cars and industrial equipment.
Economists attribute the widening gap to China's slowing economic growth and its push for self-sufficiency in key technologies. German automakers, in particular, face stiff competition from Chinese electric vehicle manufacturers, which has dampened export growth.
The trend has sparked debate among German policymakers about diversifying supply chains and reducing dependence on China. However, officials note that China remains a crucial trading partner, and any drastic measures could harm the German economy.
Looking ahead, analysts expect the deficit to persist in the second half of 2026, though the pace may slow if Chinese demand stabilizes. The German government is closely monitoring the situation and considering strategies to boost exports to other Asian markets.
