"Made in Germany" Loses Appeal! Surging Trade Deficit with China: Auto Exports Plummet 26%, Massive Imports of Laptops, Smartphones, and Lithium Batteries

This year, Germany's import volume from China has continued to grow, while its export volume to China has sharply declined. The main reason is the decreasing Chinese demand for "Made in Germany" automobiles and machinery.

According to data released Monday (July 20) by Germany's Federal Statistical Office, Germany's imports from China increased by 6.2% year-on-year from January to May, reaching €72.4 billion. China remains Germany's largest import trading partner.

Meanwhile, during the same period, Germany's exports to China plunged 14.5%, dropping to €29.6 billion, primarily due to declining Chinese demand for "Made in Germany" cars and machinery. This has widened Germany's trade deficit with China to €42.8 billion. In comparison, Germany's trade deficit with China from January to May 2025 was €33.5 billion.

From January to May this year, Germany's top imported goods from China were data processing equipment, electronics, and optical products, totaling €20.2 billion, up 4.4% year-on-year. This was followed by electrical equipment worth €14.3 billion and machinery worth €6.4 billion.

Statisticians noted, "Many of Germany's everyday goods, as well as products needed for the energy transition, now come from China." In terms of product value, approximately 81.8% of laptops imported by Germany in the first five months of this year came from China; about 66.3% of smartphones; and around 64.1% of lithium-ion batteries.

Additionally, 23.5% of electric vehicles imported by Germany come from China, while the share of Chinese-made solar cells is even higher at 86.1%.

Germany's main exports to China include machinery (€5.8 billion), data processing equipment, electronics, and optical products (€5.1 billion), and automobiles and auto parts (€4.7 billion).

Although exports of data processing equipment grew by 0.9%, machinery exports fell by 17.5%, and auto deliveries plummeted by 26.1%.

Germany's auto exports to China had already shown signs of weakness. In 2025, Germany's auto exports to China declined by 33%, falling to €13.6 billion.

For some time, German Chancellor Merz has repeatedly raised concerns about the undervaluation of the Chinese yuan, claiming the currency's exchange rate is artificially undervalued by as much as 30%, significantly lowering the price of Chinese exports. He accuses China of gaining an unfair competitive advantage over the EU, resulting in Germany and the EU's massive trade deficit with China. Currently, the EU's daily trade deficit with China reaches €1 billion.