Overview
- German industry is losing thousands of manufacturing jobs as low‑cost, state‑backed Chinese producers gain market share in electronics, machinery and electric vehicles.
- Trade figures show imports from China rose to €170.6 billion in 2025 and the German trade deficit with China widened to about €89.3 billion, reflecting faster import growth than exports.
- Key sectors under pressure include autos and e‑mobility, machinery, batteries and pharmaceuticals, with Chinese firms already increasing sales in Germany and building domestic capacity in advanced industries.
- EU member states and the German government are debating coordinated responses such as market surveillance, anti‑subsidy investigations and temporary countervailing duties while some economists urge niche industrial policies to rebuild competitive strengths.
- China’s foreign ministry has warned it will protect its interests if Europe restricts trade, raising the risk of retaliation that businesses say could raise costs for consumers and complicate supply chains for critical inputs like battery cells and pharmaceutical ingredients.