German trade deficit with China widens as Beijing buys less European machinery

Germany's trade deficit with China has widened further, according to trade figures, as Chinese industry sources a growing share of its machinery and components domestically. For decades German capital goods makers benefited from Chinese industrial expansion, exporting machine tools, automotive equipment and chemicals. That relationship has shifted as Chinese producers have moved up the value chain and, in sectors including electric vehicles and industrial automation, now compete directly with German firms both at home and in export markets. The widening gap reflects both weaker German exports to China and continued strong Chinese shipments into Europe.