Germany’s Vice Chancellor Lars Klingbeil was set to become the first representative from the current coalition government to visit China on Monday.
He is expected to discuss trade, with an emphasis on rare earth elements, with Chinese officials.
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.
The US-China trade war in particular has seen China seek to divest its exports to other markets, sparking fears in Europe of dumping that could undercut home-grown industries.
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.
A dispute between China and the Netherlands, which led to Beijing placing a limit on the trade of rare earth materials, rang alarm bells in Europe.
Check out DW’s analysis for a deeper dive on what can be expected from Klingbeil’s visit to China.
