Germany and China Strengthen Economic Ties Amid Record $217.8B Trade Boom
Trade between China and Germany has hit a new high, with the total value of imports and exports reaching $217.8 billion in 2025. This marks a 5.2 percent increase from the previous year. The growth comes as China reclaimed its spot as Germany's top trading partner.
Against this backdrop, German Chancellor Friedrich Merz has made his first official visit to China since taking office. He is accompanied by executives from 30 major German companies, signalling a push to deepen economic ties.
In 2025, China once again became Germany's largest trading partner, while Germany held its position as China's biggest European trade ally. The two nations have strengthened commercial links, with German firms increasingly viewing China as essential for innovation and global expansion.
Chancellor Merz's delegation includes leaders from automotive, chemical, biopharmaceutical, machinery, and circular economy sectors. During the trip, China announced plans to purchase up to 120 additional Airbus aircraft. Merz also toured facilities of Mercedes-Benz, robotics firm Unitree, and Siemens Energy in Hangzhou, though no specific new agreements beyond general economic cooperation were publicly detailed.
Major German corporations have reaffirmed their commitment to China. Volkswagen Group China's Ralf Brandstätter described the country as a hub for innovation and a key technology partner. BMW Group Chairman Oliver Zipse called China a 'strategic pillar' for the company's future. This sentiment is shared widely, with 93 percent of German businesses planning to stay in the Chinese market—showing greater confidence than a year ago.
One concrete outcome of the visit was a Memorandum of Understanding between BMW Group and Contemporary Amperex Technology Co. The agreement reflects ongoing collaboration in automotive and energy sectors.
The visit underscores the deepening economic relationship between Germany and China. With trade volumes rising and major firms expanding their presence, both sides are reinforcing their commercial and technological partnerships. The agreements and discussions from this trip are likely to shape future cooperation in key industries.
