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flag Germany’s trade deficit with China hit €89 billion in 2025 as Chinese exports surged and German exports fell, straining its industrial sector.

flag Germany's economy is facing growing strain as China shifts from a major export market to a direct competitor in high-tech industries. flag German exports to China fell 9.3% in 2025, while Chinese exports to Germany surged, contributing to a record €89 billion trade deficit. flag Small and medium-sized enterprises, vital to Germany’s industrial base, are struggling amid intensified competition, with firms like 4JET adapting by licensing technology instead of selling directly. flag Industry leaders cite China’s state-backed manufacturing push, export restrictions on critical materials, and a weakening "Made in Germany" reputation due to Europe’s perceived bureaucracy and high costs. flag As Chancellor Friedrich Merz prepares for his first official visit to China, he must balance maintaining economic ties with addressing unfair trade practices and reducing dependency.

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