Story perspectives

German Trade Mission to China Amid €87 B Deficit

5/27/2026

Summary

Story summary

Trade Minister Katherina Reiche led about 40 companies to China from Tuesday to Friday to discuss cooperation.
Germany records a €87 billion trade deficit with China and €250 billion bilateral trade in 2025.
German exports to China fell 9.7% YoY while imports of electronics, EVs and components rose 8.8%.
EU think-tank warned that China’s concentration in car, machinery and chemicals could weaken innovation in traditional hubs, citing the 2025 rare-earth export blockade.

History

Historical Context

In 2010 China cut rare-earth exports by about 40%, prompting a WTO dispute that the 2014 ruling forced Beijing to lift quotas in 2015. The European Commission then launched a €2 billion anti-dumping probe. Now, German Trade Minister Katherina Reiche leads a delegation of forty firms to Beijing, seeking diversified supply amid lingering EU-China tensions.

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Story summary

Trade Minister Katherina Reiche led about 40 companies to China from Tuesday to Friday to discuss cooperation.
Germany records a €87 billion trade deficit with China and €250 billion bilateral trade in 2025.
German exports to China fell 9.7% YoY while imports of electronics, EVs and components rose 8.8%.
EU think-tank warned that China’s concentration in car, machinery and chemicals could weaken innovation in traditional hubs, citing the 2025 rare-earth export blockade.

1 / 2