A familiar economic partnership is changing fast, as German factories face stronger competition and Chinese goods gain ground at home.
Germany saw its trade deficit with China grow in the first half of 2026, despite China remaining its largest trading partner. The data was released by the state-controlled agency GTAI.
German exports to China fell by more than 12% year on year, totaling just under €37 billion between January and June. At the same time, imports from China rose by 8.9% to €91.8 billion; total trade exceeded €128 billion, €3 billion more than trade with the United States.
In previous years, China was Germany’s second-largest export market. In 2021, for example, trade with China totaled more than €104 billion, despite the impact of the pandemic.
Germany is facing pressure from the United States through tariffs, as well as growing competition from China, leading to job cuts in key industries, particularly the automotive sector, as illustrated by Volkswagen.
At the same time, China is supplying Germany with an increasing volume of goods.
Compared with the same period a year earlier, Germany recorded a deficit of around €40 billion with China in the first half of this year. In 2026, that figure rose to approximately €55 billion over the same period.
Imports from China increased, while demand in Germany for Chinese products continued to grow, as China reduced its dependence on external suppliers and focused on its own production chains.
Smaller economies such as Austria and Switzerland also purchased more German goods in 2026 than China, according to the agency.
China’s reduced dependence on Germany points to the country’s growing self-reliance and technological return to the ranks of the leaders, said Commerzbank economist Vincent Stamer.
In 2025, China overtook the United States as Germany’s largest trading partner after Donald Trump returned to the White House and introduced protective tariffs that weakened Germany’s export ties with the United States.
The United States remains Germany’s largest external market, but exports there fell by around 6% in the period through June, totaling just over €74 billion. Meanwhile, imports from the United States rose by approximately 7.1% to nearly €51 billion.
France and the Netherlands rank next among the largest markets for German products. Germany’s total exports in the first six months of 2026 rose by 3.7% to €817 billion, supported by continued global orders.
But the “Made in Germany” brand still needs to be rethought.
– Vincent Stamer, Commerzbank economist
Analysts emphasize that adapting the industrial sector and expanding engagement with a range of global markets remain crucial to stabilizing trade.