"He is expected to discuss trade, with an emphasis on rare earth elements, with Chinese officials. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video However, there will also be expectations that Klingbeil, who is also Germany's finance minister, can make headway in dealing with concerns over an increasing trade deficit with China and exposure to risks from its market."
""Access to critical raw materials and the reduction of Chinese overcapacity in sectors such as steel and electric mobility are of great importance for the economy and jobs in Germany," Klingbeil said before setting off. Following the introduction of major and often-changing trade tariffs by the Trump administration in the US, Beijing overtook Washington as Berlin's largest trading partner for the first eight months of 2025."
"Germany is now facing a record trade deficit of 87 billion ($101 billion) with China, according to a forecast by state-owned international economic promotion agency Germany Trade & Invest, cited by Reuters. This comes from a year-on-year 13.5% decline in German exports to China and an 8.3% increase in imports. At the same time, China is a major supplier of rare earth materials and chips used in cars, both key to Germany's struggling industrial sector."
Lars Klingbeil will visit China as the first representative of the current coalition government to engage directly on trade issues. He will emphasize access to rare earth elements and seek to address Germany's increasing trade deficit and market exposure to Chinese risks. Germany faces a record trade deficit of €87 billion after a 13.5% drop in exports to China and an 8.3% rise in imports. Beijing became Germany's largest trading partner amid shifting US trade policy and tariffs. European industries fear Chinese dumping due to diverted exports. China remains a major supplier of rare earths and automotive chips, crucial to Germany's industrial sector.
Read at www.dw.com
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