Status: 01/17/2023 08:59 a.m
China was one of Germany’s most important trading partners in 2022, according to a study by the Federal Foreign Trade Agency. However, German foreign trade with China is getting into trouble.
The dependence of German foreign trade on the Chinese market continues to grow. This is the result of an analysis published today by the Germany Trade and Invest (GTAI) agency. While imports from the world’s second largest economy after Germany continued to rise sharply in 2022, German exports to China made little progress last year.
According to the study, German foreign trade with China is therefore becoming more and more unbalanced. The GTAI is the federal foreign trade agency that supports German companies abroad and foreign companies settling in Germany.
Trade flows shift
The agency’s data show a shift in trade flows that was unfavorable for Germany last year. On the one hand, China is becoming less important as a destination for German exports. The increase in exports to China was below average at 3.7 percent.
On the other hand, Chinese companies’ exports to Germany continued to rise sharply. The value of goods imported from China has increased by almost 37 percent. “This increases dependence on China and the trade deficit is heading for a negative record,” the study said.
More German exports to the USA
China remains one of the most important trading partners for German exporters. Among the most important buyers of German goods, China slipped from second to fourth place, according to the analysis, which is based on figures from the Federal Statistical Office up to November.
By far the most important export market for German companies, the USA, continued to gain in importance last year. Significantly more was also exported to Poland and Austria in the past few months. Germany’s export economy, above all mechanical engineering and the automotive industry, has suffered massively from delivery problems and material shortages in recent months.
According to the agency, there is still hope for an upturn in trade with China: The departure from the zero Covid strategy in China is a good signal for exports. However, the mood among German companies in China is still rather subdued.