China Becomes Germany's Top Trade Partner Amid Economic Challenges and Dialogue

In 2025, China surpassed the United States as Germany's largest trading partner, with bilateral trade reaching €251 billion, while trade with the US declined to €240 billion. Germany faces a significant trade deficit with China, driven by Chinese overcapacity, which Chancellor Friedrich Merz highlighted during his Beijing visit. Merz emphasized the need for fair cooperation and open dialogue, aiming to balance economic ties without decoupling. China disputes overcapacity claims, citing its role in supporting green transition goals. Plans for ongoing government consultations were announced to address competition and trade issues.