Rapid increase in imports from China and the drop in exports from the US led to a change at the top of Germany's most crucial trading partners. The People's Republic of China overtook the United States as the largest trading partner Germany in the first 9 months of the year, as stated by the national Statistical Office on Wednesday. abroad trade with China – full exports and imports – increased by 0.6% to EUR 185.9 billion. However, the volume of trade with the USA fell 3.9% to EUR 184.7 billion. China was Germany's largest trading partner from 2016 to 1923, but last year it was overtaken by the United States.
This improvement is primarily a consequence of the US President's trade policy Donald Trump. According to research, Chinese companies redirect their exports to the German marketplace as a consequence of the trade war with the US. "As the US is becoming increasingly isolated from China, Germany They become an alternate outlet for Chinese companies," said expert Jürgen Mathes of the Cologne Institute for economical investigation (IW).
Import dropped by 5.1% to $340.4 billion. However, exports increased by 0.1% to $280.8 billion. The publication of the data was originally scheduled to appear on October 7, but was postponed due to a fresh 43-day suspension of the US government's activities.
U.S. president Trump is profoundly afraid about the advanced trade deficit. He so imposed advanced duties, even on friendly countries. The ultimate Court, at a proceeding on Trump's legality, expressed doubts.
China is likely to proceed to gain importance
According to the German Union of Wholesale, abroad Trade and Services (BGA), China will become even more crucial to Germany in the future – despite all efforts to separate them. "My view is that China will proceed to gain importance as a trading partner – especially on the import side – despite the German government's hazard minimisation policy," said BGA president Reuters, Dirk Jandura . Businesses and decision-makers must cooperate to find solutions to diversify supply chains and reduce dependency.
German exports to China decreased by 12.3% to EUR 61.4 billion by the end of September. "Chinese companies are expanding their production capacity, both qualitatively and quantitatively, meaning that the marketplace is becoming little dependent on imports," Jandura explained, listing 1 of the reasons for the decline. He added that German companies are increasingly moving their production to China for geostrategic reasons and besides due to the fast technological improvement in the country, "to produce straight on site alternatively of exporting from Germany".
German imports from both countries increased in the first 3 quarters. Imports from China increased by 8.5% to 124.5 billion euro and from the US by 2.8% to 71.9 billion euro. The People's Republic remained by far the most crucial supplier to Germany, ahead of the Netherlands (EUR 73,5 billion). The United States took 3rd place.
