Germany warning China again

China still not giving a lā shǐ.

Germany’s Leader Delivers a Blunt Warning to China on Trade – Chancellor Friedrich Merz laid out his complaints in a frank message to his hosts on a trip to Beijing that China had designed to showcase their relationship.

Chancellor Friedrich Merz of Germany arrived in China on Wednesday with an outstretched hand and a list of complaints for his hosts, asking for closer diplomatic ties but also relief from economic policies that he said were impeding “fair competition.”

Rebound?

More like a dead cat bounce.

German Economy Grows by 0.3% in Q4, Stats Office Says – The German ​economy ‌grew ‌by ⁠0.3% in ⁠the fourth quarter ​of ​2025 compared ⁠with ⁠the ⁠previous quarter, the ​statistics ​office ⁠said ⁠on Wednesday, confirming its ⁠preliminary reading.

Meanwhile… German auto exports to China plunged by a third in 2025, economic institute says.

Germany + China = Shock

For Germany.

“The China shock is here,” the German Economic Institute declared last year. Indeed, 2025 will go down as the year in which it could no longer be denied. Germany’s trade deficit with China reached a record level of €87 billion—an increase of €20 billion compared to the previous year. And German exports to China continue to be in free fall. The United States, France, the Netherlands, Poland, and Italy have by now become more important export markets for Germany than China.

Maybe not the best top trading partner to have.

A Tale of Two Headlines

“German business lobby warns of unfair trade practices by China” vs. “China overtakes US to become Germany’s top trading partner.”

China has overtaken the US as Germany’s most important trading partner, according to figures released by Germany’s Federal Statistical Office (Destatis) on Friday.

The sum of exports and imports between the two countries last year totaled €251.8 billion ($296.6 billion), a 2.1% increase, according to Destatis.

China was Germany’s most important trading partner from 2016 all the way through to 2023. In 2024, the US briefly held the title.

German Chancellor Friedrich Merz is also set to visit China next week, where he is set to discuss trade and other topics.

“Learn to code?”

Forget that one, right? Get a job with a German armaments firm instead.

That’s the only industry booming over here at the moment.

German Shipbuilder TKMS Reports Rise in Sales, Earnings Fueled by Europe’s Defense Spending – Results are first since spinning off from Thyssenkrupp and its Frankfurt IPO.

German of the day: Hin und her

That means back and forth. To and fro. Undecided.

“Until further notice” is now. For now.

The German government says it’s lifting restrictions on exports of military equipment to Israel – The German government said Monday that it’s lifting its restrictions on exports of military equipment to Israel, weeks after the ceasefire between Israel and the Hamas militant group.

Chancellor Friedrich Merz said in early August that Berlin wouldn’t authorize any exports of military equipment to Israel that could be used in Gaza “until further notice.” That was a response to a decision by the Israeli Cabinet to take over Gaza City.

Stunning and brave

And profitable.

Now that everything in Gaza has been decided by someone else.

German deputy leader signals lifting curbs of arms exports to Israel – Germany’s Vice Chancellor Lars Klingbeil on Sunday signalled his government would lift restrictions on supplying weapons to Israel that were announced in August as a rebuke to Israel’s expanding military operations in Gaza.

The remarks by Klingbeil to German broadcaster ARD on Sunday evening suggested a policy shift following the Gaza peace plan, with a ceasefire holding between Israel and Hamas for a third day ahead of a peace summit in Egypt on Monday.

German of the day: Alleingang

That means going it alone.

A major pillar of German international policy is to regularly stress how Germany will never again “go it alone.” German politicians then promptly demonstrate the importance of this strategy by going it alone once again.

Germany halts arms exports that Israel can use in Gaza – Germany is to suspend exports of weaponry that could be used in the Gaza Stripbecause of Israel’s plan to expand its operations there – the first time united Germany has acknowledged denying military support to its long-time ally.

Chancellor Friedrich Merz’s sudden about-turn on Friday followed mounting pressure from the public and his junior coalition partner over the manmade humanitarian crisis in Gaza, where Israel has severely restricted supplies of food and water.

Shock treatment about to begin in Germany

China shock treatment.

If the Chinese can’t displace the American workforce anymore, then they’ll displace another one (or two, or three…).

The China shock hits Germany – Trade with China displaced large parts of the American workforce in the 2000s, but Germany did not experience a similar shock at the time…

Not at any price…

But at all costs.

The clock is ticking.

German exporters don’t want US trade deal ‘at any price’, says trade group – The European Commission aims to reach a trade agreement outline with the U.S. in the coming days, ahead of the August 1 deadline set by President Donald Trump for broad tariff increases.

Exports to the United States dropped 7.7% in May month on month, following a 10.5% decline in April, data showed on Tuesday.