China overtakes Germany in some exports, raising trade profile and EU eyebrows ahead of Scholz visit
- China has passed Germany in exports of certain products, marking a quantum shift in trade status between the two manufacturing powerhouses
- Changes in balance of power could aggravate already tense relations between the countries, as well as with the collective West
China has surpassed Germany in the exports of some products, a changing of the guard which has already altered the balance of trade in major markets, posed challenges to the European manufacturing powerhouse and cast a cloud over bilateral relations, according to a new report.
While Germany has historically been a major source of imports in the European Union, particularly in advanced sectors like motor vehicles and machinery, its market share has been declining, insurer Allianz Trade said in a publication that declared “the trade tide is turning”.
In contrast, the company said, China has been “making significant gains” in the European market across sectors like computers, electronics and optical products, metals and basic pharmaceuticals.
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“The momentum is especially strong in electrical equipment, which has risen by 5.1 percentage points from 2018 to 2023 and 7 percentage points from 2013 to 2023,” the report noted. “This trend highlights the growing competitiveness of China.”
China remains Germany’s largest trading partner. But figures from China’s General Administration of Customs showed that exports and imports between the two countries in 2023 dropped 8.7 per cent from a year earlier, falling to US$206.8 billion.
[China] has … captured market share in advanced industrial sectors while simultaneously squeezing out European products
“China is moving up global value chains, with global export market shares surpassing Germany in key sectors,” said the Allianz report.