Germany Seeks a Balanced Relationship
Germany’s economy minister, Katherina Reiche, said during a visit to Beijing that a modern economic relationship with China requires both cooperation and competition. According to Reuters, Germany is trying to manage its relationship with China at a time of rising protectionism, global trade shifts and stronger competition from Beijing. This is especially important because China remains Germany’s largest trading partner in goods.
Cooperation and Competition
Reiche emphasized that competition can strengthen economies, while cooperation can create stability and innovation. However, she also stated that competition must be fair and mutually beneficial. This message reflects Germany’s attempt to maintain dialogue with China while also defending better conditions for European companies operating in Chinese markets.
Trade Deficit and Business Concerns
The economic relationship between both countries remains significant but increasingly uneven. Reuters reports that China was again Germany’s largest trading partner in goods in 2025, with trade volume of around €250 billion. However, German exports to China fell by around 10 percent, while imports from China rose, creating a trade deficit for Germany. This imbalance has increased concerns among German companies and policymakers.
Critical Minerals and Rare Earths
Access to critical minerals and rare earths remains one of the most important issues in Germany-China economic relations. Reiche said she discussed reliable access to critical minerals for German companies with Chinese counterparts. This matters because rare earths and other strategic materials are essential for industries such as automotive manufacturing, renewable energy, electronics and defense technology.
International Relevance
Overall, the Reuters report shows that Germany is trying to preserve stable economic ties with China while reducing strategic vulnerabilities. The relationship is no longer based only on trade growth, but also on fair competition, supply chain security and access to critical inputs. For this reason, Germany-China relations are relevant beyond Europe and Asia-Pacific, as they reflect broader tensions in the global economy between cooperation, protectionism and strategic dependence.
Reference: Reuters. (2026, May 27). In China, German minister says economic relationship requires cooperation, competition. https://www.reuters.com/world/asia-pacific/modern-economic-relationship-requires-cooperation-competition-german-minister-2026-05-27/