Germany’s China Trade Deficit Hit €55B—and German Exports to China Fell More Than 12%

China used to be Germany’s second-biggest export market. It is now ninth.

German exports to China fell to less than €37 billion during the first half of 2026, while imports from China increased 8.9% to €91.8 billion. That widened Germany’s bilateral trade deficit to about €55 billion, up from €40 billion a year earlier.

The direction of dependency is changing.

For years, Germany’s China story was about BMWs, machinery and industrial equipment flowing east. China has invested heavily in domestic manufacturing and increasingly produces equipment and technologies it once imported.

German companies are now dealing with the reverse pressure: weaker Chinese demand for European products and stronger Chinese competition at home.

There is another wrinkle. Germany’s overall exports still grew 3.7% in the first half. This is not simply “German exports collapsing.” It is a specific deterioration in one of Germany’s historically most important industrial relationships.

For markets, trade exposure should be judged by direction—not merely total volume.

Not Financial Advice.

Is Germany de-risking from China—or is China simply becoming less dependent on German industry faster?