BERLIN, May 9 — The United States has surpassed China as Germany’s primary trading partner in the first quarter of this year, based on calculations from official data provided by the German statistics office, as reported by Reuters. Germany’s combined exports and imports with the United States totaled €63 billion (US$68 billion) from January to March, while trade with China amounted to just under €60 billion, according to the data. In 2023, China was Germany’s top trading partner for the eighth consecutive year, with trade volumes reaching €253 billion, only slightly ahead of the US.
Commerzbank economist Vincent Stamer attributed the shift in the first quarter to a robust US economy boosting German exports, while both exports to and imports from China have decreased. Structural changes also played a role, he noted. “China has advanced in producing more complex goods domestically, which it previously imported from Germany,” said Stamer. “Additionally, German companies are increasingly manufacturing locally in China instead of exporting from Germany.”
Germany has expressed a desire to reduce its reliance on China, citing political differences and alleging “unfair practices” in its first China strategy announcement last year. However, specific policy measures to reduce dependencies have not been clearly defined. German imports of goods from China decreased by almost 12 percent year-on-year in the first quarter, while exports to China fell by just over 1 percent, according to Juergen Matthes from the German economic institute IW.
“The Chinese economy’s underperformance, contrasted with the US economy’s better-than-expected performance, is likely influencing this trend,” said Matthes. Currently, the US accounts for approximately 10 percent of German goods exports, while China’s share has dropped to less than 6 percent, Matthes added. “A reorientation appears to be occurring, possibly driven by geopolitical factors, moving away from China and towards the US,” he noted.
The future of this trend is uncertain. “If the US administration changes direction towards more market restrictions after the November elections, this trend could halt,” said Dirk Jandura, president of the BGA trade association.
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