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China Reclaims Top Trading Spot with Germany Amid Trade Deficit

2/23/2026

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Story summary
  • China has regained its status as Germany's top trading partner, with bilateral trade reaching €251.8 billion in 2025.
  • The United States briefly overtook China as Germany's main partner in 2024, but this lead was short-lived.
  • Germany's trade deficit with China has widened, with imports surpassing exports significantly.
  • The December 2025 closure of a Volkswagen plant marks a decline in Germany's industrial prestige.
  • Chancellor Friedrich Merz seeks concessions from China and argues reforms are needed for a sustainable economic strategy, which currently lacks political support.