China Reemerges as Germany's Largest Trading Partner, Trade Deficit with China Reaches 64.7 Billion Euros
AFP reports that according to official data released on Wednesday, November 19, this year China has once again become Germany's largest trading partner, surpassing the United States, which was affected by the trade war.
From January to September this year, the total trade between China and Germany, which includes imports and exports, reached 185.9 billion euros, an increase of 0.6% compared to the previous year. The German Federal Statistical Office stated in a statement that, by comparison, trade between Germany and the US fell by 3.9% to 184.7 billion euros during the same period. From 2016 to 2023, China had been Germany's largest trading partner, until last year when it was replaced by the United States.
The US tariffs that came into effect in the spring caused a significant drop of nearly 8% in Germany's exports to the US, which has had a considerable impact on Germany's export-oriented economic model. At the same time, exports to China also decreased by 12.3% due to increasing competition from China.
Although China is Germany's largest trading partner, in terms of trade balance, Germany's trade deficit with China has reached 64.7 billion euros since the beginning of this year, while Germany's trade surplus with the US is 41.1 billion euros, making the US still Germany's largest export market.
Jens-Oliver Niklasch, an economist at LBBW, told AFP: "Chinese industries have made significant progress in many areas, and the quality has also improved." In his view, China is now seen more as a "competitor" rather than a "trading partner." Carsten Brzeski, an economist at ING, told AFP that this change reflects Germany's continued reliance on key materials where China holds a dominant position, such as rare earths and semiconductors.
Currently, German Finance Minister Christian Lindner is visiting Shanghai on Wednesday. This is the first official visit by the government of Chancellor Olaf Scholz since May, amid tight semiconductor supplies and EU accusations of unfair competition in China's automotive industry. However, the Scholz government remains cautious towards the world's second-largest economy. Nevertheless, the German finance minister called for "competition must be fair, and access to rare earths and raw materials must be secured" to promote Sino-German cooperation.
Source: rfi
Original: www.toutiao.com/article/1849247778731008/
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