Germany's trade deficit with China surged 142.8% in the first eight months of this year - gold replaced cars as Germany's largest single shipment to China

Europe is buying large quantities of Chinese hybrid electric vehicles - imports have increased by more than 400% this year - while Germany's exports of cars to China have dropped significantly, with gold becoming its largest single shipment (single shipment) to China. These are just two findings from the latest data, which not only show the rapid shift in the old trade model but also the sharply different industrial fates of the EU and China.

The South China Morning Post reported that as the EU's largest economy and a manufacturing powerhouse, Germany's trade deficit with China surged 142.8% in the first eight months of 2025, reaching $17.4 billion, compared to $7.2 billion in the same period last year. The survey results are part of detailed data released by Chinese customs on Saturday, which will serve as a warning for Berlin.

For a long time, cars have been seen by Chinese buyers and suppliers as a symbol of German manufacturing strength. Although cars remain Germany's largest industrial export product to China, they no longer hold the top position in customs data.

By August, the export volume of passenger cars was replaced by shipments of unprocessed gold - Germany has no active gold mines - and medicines, a ironic development that will spark debates that China is no longer the "gold mine" for German car manufacturers.

In the first nine months of this year, exports of internal combustion engine passenger cars in Germany fell 43.9%, dropping from $7 billion to just $4 billion. At the same time, shipments of automatic transmissions in Germany also fell 12.9%, and other automotive parts fell 32.3%.

Additionally, according to calculations by the newspaper based on official data, exports of industrial machinery declined by 16.2%, and exports of control instruments fell by 25.5%. The severity of the problems facing Germany and other European automotive centers is evident: as the Chinese market's preference for Western car brands declines, Europe's reliance on Chinese electric vehicles and batteries is increasing.

In the first nine months of this year, the shipment of plug-in hybrid electric vehicles (PHEVs) from China surged 439.4%, rising from $524 million to $2.8 billion, as exporters tried to avoid the EU's anti-subsidy duties that apply only to fully electric models. During the same period, lithium-ion battery exports to the 27 EU member states increased by 36.6%, as the EU faces the reality of using Chinese motors to drive its own electric revolution.

The above data show that Bulgaria's imports of lithium batteries from China jumped 860%, exceeding $500 million, while Germany's imports exceeded $9 billion. This trend has not gone unnoticed by EU officials. Earlier this month, the European Commission stated that it is "monitoring" the sharp increase in plug-in hybrid electric vehicle exports from China, a move coming as the EU executive body determines whether U.S. trade tariffs on China have caused low-cost goods to shift to Europe.

According to a statement from the European Commission, its trade shift data "more specifically shows that Chinese exports of plug-in hybrid electric vehicles to the EU have increased sharply over the past few months. Steel products are also under monitoring. However, this does not automatically mean that this growth is harmful to EU industries."

At the beginning of this month, in her annual State of the Union speech, European Commission President Ursula von der Leyen warned: "We cannot let China and other countries take over this market." She pointed out, "Regardless, the future is electric. Europe will be part of it. The future of cars - and future cars - must be made in Europe."

Despite this, these data put immense pressure on European policymakers and manufacturers, forcing them to support the struggling automotive industry. Last week, von der Leyen chaired the third dialogue with the automotive industry, and executives called for urgent action to help companies cope with the fierce competition from China.

The report said that one of the main demands raised by industry executives, which surprised many, was to cancel the strict phase-out targets for internal combustion engine vehicles in the EU, which would delay the EU's transition to electric vehicles.

Mercedes-Benz CEO Ola Källenius said after the meeting: "Strict carbon dioxide emission regulations for passenger cars and vans must adapt to reality. To succeed, all core EU priorities must be achieved: economic security and industrial competitiveness." A Chinese enterprise group said the surge in plug-in hybrid electric vehicles "should be viewed objectively, as they still account for a small share of the entire market."

Meanwhile, Sino-European trade tensions continue to escalate. China recently imposed anti-dumping duties on pork and pig by-products and related brandy from the EU, seen as a countermeasure against the EU Commission's investigation into imported Chinese electric vehicles for anti-subsidy measures. Because China has refused to open its market to European companies on an equal basis, the EU has banned Chinese medical device manufacturers from participating in the group's profitable procurement tenders.

Last week, the South China Morning Post reported that the European Commission is having "serious discussions" about using the "anti-coercion tool" for the first time against Beijing, possibly in response to what is seen as the "weaponization" of rare earth minerals and magnet exports. However, despite the controversy, the pace of trade investigations has slowed down. After initiating 20 cases in 2024, a record number, the EU launched only six in 2025.

Sources: rfi

Original: www.toutiao.com/article/1844077399847936/

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