Germany shifts to tougher China stance

Germany's attitudes toward China have changed due to declining trade and increasing competition between the two, especially in the automotive sector. In recent years, Germany's exports to China have decreased by more than 54% between 2022 and 2025, and German car companies have experienced a sharp decline in sales in the Chinese market, with a 66% drop according to Rodayum Group data. Conversely, Chinese car imports to Germany increased by 121% during the first seven months of the year, reflecting escalating competition both domestically and internationally. As a result, Germany and the European Union have called for protective measures such as establishing mechanisms to exclude untrustworthy partners from the market and imposing restrictions on the export of key metals. The European Union aims to strengthen European investments and avoid over-reliance on China in the automotive and energy sectors, especially in light of the potential escalation of Chinese export restrictions.

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