China has been Germany's top trade partner for the last eight years, but something has shifted this year — the US could be moving into the top spot.
Electric vehicles are causing rifts Automobiles are at the center of a new dispute between China and Germany. The European Union recently imposed tariffs up to 38.1% on Chinese electric vehicles, following the Biden administration's decision to impose 100% tariffs on Chinese EVs. On the other hand, German car companies like BMW, Porsche, and Volkswagen rely heavily on the Chinese market. Nearly a third of German car sales in 2023 came from China, according to Reuters, leaving the industry vulnerable to a trade war.
China's support for Russia and supply chain problems bolstered tensions German government data released Friday revealed a 14% decline in German exports to China in May year-over-year, while exports to the US increased 4.1% during the same period. Trade between China and Russia reached a record $240 billion in 2023. Meanwhile, according to a survey by the European Union Chamber of Commerce in China, just 13% of EU companies see China as a top investment destination.
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