The EU’s goods trade deficit with China hit €360 billion in 2025. That’s a 20% jump from the prior year.
Germany, Europe’s largest economy and historically China’s most important trading partner on the continent, is feeling the squeeze more than most. Its bilateral deficit with China nearly doubled to around €90 billion, a 33% year-over-year increase that has Chancellor Friedrich Merz searching for answers.
The numbers tell a lopsided story
German exports to China fell 9.7% to €81.3 billion in 2025. Meanwhile, imports from China surged 8.8% to €170.6 billion over the same period.
Merz has described this imbalance as “unhealthy,” noting the deficit has quadrupled since 2020.
