According to official statistics from Germany, in the first quarter of this year, the United States has surpassed China to become Germany’s most important trading partner.
Data shows that from January to March this year, the total import and export trade volume between Germany and the United States reached 630 billion euros (about 680 billion US dollars), slightly higher than that with China which was just below 600 billion euros.
From 2016 to 2023, China was Germany’s largest trading partner for 8 consecutive years. However, in 2023, the trade volume between China and Germany began to significantly decline, decreasing by 15.5% year-on-year, eventually only leading the US-Germany trade volume by a few billion euros.
Vincent Stamer, an economist at Commerzbank, explained the changes in the first quarter, saying, “Due to the strong US economy, Germany’s exports to the United States are further increasing, while imports and exports to China have both declined.”
Citing political discord as a reason, Germany, in its first disclosed strategy towards China last year, accused the Chinese authorities of “unfair practices” and expressed a desire to reduce investment in China. However, German authorities have not clearly put forward policies to reduce dependency on China.
Juergen Matthes from the Institute of Economic Research in Germany pointed out that in the first quarter, the value of goods imported from China by Germany decreased by nearly 12% year-on-year, while the value of goods exported to China only decreased by a little over 1%.
Matthes stated, “China’s economic performance has been worse than expected by many, while the US economy has exceeded expectations, which is probably the reason for this situation.”
The United States currently accounts for approximately 10% of Germany’s exports. Matthes mentioned that China’s share has fallen to less than 6%.
He further elaborated, “Due to the evident global economic headwinds facing the German economic model, coupled with geopolitical considerations, Germany appears to be repositioning itself: moving away from its systemic competitor China (the CCP), and turning towards its transatlantic partner, the United States.”
However, with the US presidential election approaching, it is currently unclear if this trend will continue.
Dirk Jandura, Chairman of the Wholesale and Foreign Trade Association (BGA) in Germany, expressed, “If there are changes in the White House after the November US election and more measures are taken to close markets, this process may stall.”
(This article referenced related reports from Reuters)