Germany’s trade deficit with China widened to about €55 billion in the first half of 2026, according to preliminary data from state-run agency Germany Trade & Invest. China still ranked as Germany’s top trading partner by total trade, but German exports to China dropped more than 12% year on year to just under €37 billion between January and June, while imports from China rose 8.9% to €91.8 billion. Total bilateral trade topped €128 billion, around €3 billion more than with the United States. The figures highlight a sharp shift in Germany’s commercial relationship with China. Once Germany’s second-biggest export market as recently as 2021, China has fallen to ninth place for German goods, behind smaller economies including Austria and Switzerland. GTAI East Asia expert Corinne Abele said weaker Chinese domestic conditions, a growing focus on domestic value chains, more local production by German companies inside China, and reduced investment linked to China’s property crisis and cash-strapped regional governments were weighing on exports. Commerzbank economist Vincent Stamer said China’s declining reliance on Germany shows it is becoming more independent of Western powers and catching up technologically. The data also points to broader strain on German manufacturing, which is contending with U.S. tariffs and stronger Chinese competition. China overtook the United States as Germany’s top trading partner in 2025 after U.S. President Donald Trump returned to the White House and introduced protectionist tariff policies. Even so, the United States remained Germany’s largest single export market, though German exports there fell about 6% through June to just over €74 billion, while imports from the U.S. increased 7.1% to nearly €51 billion. Overall German exports still rose 3.7% to €817 billion through June, but Stamer said the "Made in Germany" brand must reinvent itself.