Germany backs EU’s tough China line with call for ‘Plaza Accord’ talks on yuan

Germany contemplates action to address €360B deficit with China

Germany's trade deficit with China hit €90B in 2025 (exports declined 9.7%, imports rose 8.8%)—automotive, machinery, chemicals under pressure. EU protectionism risks Chinese retaliation blocking German automakers' market access while subsidized competitors erode domestic margins—critical supply-chain vulnerability for tech leaders.