Germany’s trade deficit with China widened to nearly €55 billion in the first half of 2026, despite China becoming Germany’s top trading partner. Preliminary data from Germany Trade & Invest, reported by Reuters, showed German exports to China fell by more than 12% from January through June to below €37 billion. China has dropped to ninth place as a market for German goods.

Chinese companies have reduced their reliance on European imports, contributing to the decline in German exports. Around 2021, China was Germany’s second-largest export market, when Germany sold €104 billion in goods there despite the effects of the pandemic. In 2026, several smaller economies, including Austria and Switzerland, bought more German goods than China.

German imports from China rose 8.9% to €91.8 billion during the period, taking total bilateral trade above €128 billion, €3 billion more than Germany’s trade with the United States. The deficit was €40 billion in the first half of last year. Germany’s manufacturing sector is also facing pressure from US tariffs and Chinese competition, with major industrial companies such as Volkswagen seeing substantial job cuts.