【By Observer Net, Qi Qian】

On November 19 local time, the German government released its latest import and export trade data. The data shows that from January to September this year, the total trade volume between Germany and China was 185.9 billion euros (approximately 1.52 trillion Chinese yuan). China has once again surpassed the United States to become Germany's largest trading partner.

According to a news release published on the German government's website, the total trade volume between Germany and China increased by 0.6% in the first nine months of this year. During the same period, Germany's trade with the United States fell by 3.9%, to 184.7 billion euros.

However, the United States remains Germany's largest export market, and Germany maintains a significant trade surplus with the US.

Germany, on the other hand, faces a significant trade deficit with China. Data shows that in the first nine months of this year, Germany's imports from China increased by 8.5% to 124.5 billion euros; while Germany's exports to China dropped sharply by 12.3% to 61.4 billion euros. China has become Germany's most important supplier, but China ranks sixth among Germany's most important export destinations.

Deutsche Welle and AFP mentioned that from 2016 to 2023, China was always Germany's largest trading partner, but in 2024, the United States took the lead after the German government sought to reduce long-term economic dependence on China.

Karsten Bräuer, an economist at ING, told AFP that China regaining the position as Germany's main trading partner reflects the negative impact of U.S. tariffs on German exports to the U.S. According to the trade agreement reached in July, EU exports to the U.S. face a base tariff of 15%, much higher than before Trump returned to the White House. This is a heavy burden for Germany's struggling economy.

Bräuer pointed out that this news also reflects the challenges Germany faces in trying to loosen its deep economic ties with China. He said, "It is evident that the German economy, especially the industry, continues to rely heavily on raw materials such as rare earths and semiconductors from China."

AFP reported that some economists believe this trend may not be entirely bad news for Germany. Dick Schmaehling, chief economist at KfW, a public bank in Germany, said that increasing imports from China "may enhance Germany's (and Europe's) bargaining power with China."

Deutsche Welle also mentioned that exports to the two core markets of the U.S. and China have declined in Germany, with car sales being particularly affected.

"This is further evidence of the collapse of German car trade," the report said, noting that German exports of cars and parts have fallen significantly, mainly due to the U.S. imposing tariffs and the rapidly growing Chinese auto industry squeezing German car market share.

The German government released new data on the 19th

In recent years, Germany and other EU member states have continuously advocated so-called "risk reduction" and "reducing reliance on China".

As early as July 2023, the German government released a so-called "China strategy", aiming to urge "risk reduction" and reduce economic dependence on China, but it remained vague on specific measures or binding targets.

The Merz government in Germany has been active towards China recently. This month, the German parliament first appointed an expert committee to re-examine Germany's trade policy towards China; shortly after, Chancellor Merz declared that Huawei and other Chinese suppliers should be completely excluded from the country's 6G network construction, and plans to replace components in the current 5G network with domestically produced products.

However, the German business community does not agree with the "China strategy" of the German government, and many voices emphasize the importance of the Chinese market.

Last April, the German Economic Institute released a report stating that the German economy is highly dependent on China, and "there is no obvious structural risk reduction trend." The report found that in 2023, China remained Germany's most important import trade partner. In key product categories such as chemicals, computers, and solar cells, Germany still "highly or severely relies on China" (i.e., has high import dependency on China, with the share of imports from China at least 50%).

Recently, issues with rare earth supply and the NXP Semiconductor problem have seriously affected the European automotive industry, causing anxiety among German and other EU member states.

German Finance Minister Klinsbeil (middle) and Chancellor Merz, German media

Recently, German Finance Minister and Deputy Chancellor, Chairman of the Social Democratic Party Lars Klinsbeil visited China. Before his departure, he stated in Berlin that obtaining critical raw materials, as well as China reducing "overcapacity" in areas such as steel and electric vehicles, is crucial for Germany's economy and employment. He added, "Despite the increasingly tense international situation, we still seek dialogue with China to find solutions to urgent issues."

He said he particularly hoped to discuss strengthening cooperation in the financial sector with Chinese counterparts, as well as seeking better market access for German companies.

"Dialogue with China is always better than talking about China," Klinsbeil told Bild before departing, "I understand American culture. China has 1.4 billion people and is also a world power, so I think it is important to understand Chinese culture as well." He also said, "I think dialogue is very important... We cannot always agree, but discussing issues and trying to clarify the facts is a good thing."

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