China has managed to beat the United States (US) to become Germany's largest trading partner for the first 8 months of 2025.
This is due to high tariffs that burden Germany's export sector to the US, making China a better choice.
According to preliminary data from the German statistical office, the total bilateral trade between Germany and China recorded a figure of about €163.4 billion from January to August 2025, exceeding the total trade with the US which was €162.8 billion in the same period.
The 7.4% decline in German exports to the US during the period is believed to be due to new tariffs introduced by the administration of President Donald Trump, which affected exports of goods such as cars, machinery and chemicals.
While German exports to China also fell by around 13.5%, total imports from China rose by 8.3% to around €108.8 billion, contributing to the overall increase in bilateral trade.
The German economy is facing structural challenges as Chinese competition in manufacturing and technology increases while demand from the US shrinks as a result of tariff policies.
Analysts have warned that relying too heavily on China could be risky, especially as Germany and Europe have pledged to “reduce exposure” to Beijing, but the reality of trade figures suggests otherwise.
