China has overtaken the US as Germany's largest trading partner

China has overtaken the US as Germany's biggest trading partner, figures show, as Chancellor Friedrich Merz prepares for his first visit to Beijing since taking office. Merz will travel to China on Tuesday and will be greeted by Premier Li Qiang with military honours in Beijing on Wednesday, before meeting President Xi Jinping for dinner talks later, his spokesman Sebastian Hille said, The Guardian pointed out.

Germany's Federal Statistical Office released data on Friday showing that China has once again become the country's most important market with trade worth €251bn (approx. CZK6.4bn) in 2025, an increase of 2.2 % compared to 2024, when the US was the main export destination.

In 2025, Germany will import about €170.6 billion (approx. CZK 4.35 trillion) worth of goods from China, more than double the value of German exports to China, which amounted to €81.3 billion (approx. CZK 2.07 trillion).

Trade with the US was worth €240 billion (approx. CZK 6.12 trillion), with Donald Trump's controversial tariffs partly a potential factor in the five per cent drop in trade

Hille said that during his two-day trip to China, Merz will also visit the Forbidden City, Chinese company Unitree Robotics, German car manufacturer Mercedes-Benz and turbine manufacturer Siemens Energy. He will also visit the city of Hangzhou in eastern China.

Merz is expected to raise a number of issues during his visit, including the war in Ukraine, human rights and trade.

The EU is trying to curb China's overheating industry, with tariffs on EU imports of electric vehicles introduced in 2024 having little impact on sales and the threat of tariffs on steel later this year through the steel measures.

Germany's trade relations with China are complicated because car companies have a significant manufacturing presence in the country. Volkswagen calls China its „second home market“ and BMW and Mercedes-Benz are also heavily dependent on sales in the country for their economic success.

BMW CEO Oliver Zipse will be one of 30 corporate representatives who will accompany Merz on the trip. „Complex global issues can only be tackled together,“ Zipse told Reuters. „With his trip to China, the chancellor is sending a strong signal for dialogue and cooperation.“

The EU is trying to reduce the risks and has introduced several initiatives to wean itself off China, which dominates the supply of rare earths, processed rare earths, critical minerals and refined critical minerals, including lithium needed for EV batteries and permanent magnets used in everything from cars and refrigerators to military fighter jets.

Germany's need to support the auto industry, one of the country's largest employers, has made its approach to barriers against Chinese imports less black and white.

Germany voted against the EU's decision to impose tariffs on Chinese electric vehicles in 2024, and this month was spared from EU tariffs on imports of the Chinese-made Volkswagen Cupra Tavascan SUV in exchange for commitments on the vehicle's minimum price.

gnews.cz - GH