German imports from China surged in 2025 while exports to the Far East fell sharply, resulting in a trade deficit of around €90 billion, according to the German Economic Institute (IW). This represents an increase of nearly €30 billion, or more than a third, compared to 2024.
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For the first time, Germany imported more than twice as much from China as it exported there. Exports to China dropped almost 10%, causing China to fall to Germany's sixth-largest export partner, behind Italy, compared with second place in 2021. Meanwhile, imports from China rose roughly 9%, making China Germany's largest overall trading partner, just ahead of the USA.
Analysts cite unfair competitive practices by China, including currency undervaluation and heavy economic subsidies, as key drivers of the imbalance. Germany continues to maintain trade surpluses with most other partners, highlighting the unique pressure posed by China.
The report emphasises that while domestic reforms to improve competitiveness are necessary, they are insufficient alone. To address the growing threat, Brussels is urged to implement a robust trade policy response to counteract these market distortions.
This growing trade imbalance has dual effects: weakening Germany's export sector while simultaneously intensifying competitive pressure from Chinese imports.
Source: www.moebelfertigung.com
