China Becomes Germany's Leading Trading Partner
February 24 2017 - 7:49AM
Dow Jones News
By Andrea Thomas
BERLIN--China upstaged the U.S. and France to become Germany's
leading trading partner for the first time last year, highlighting
the broad footprint of Germany's export-oriented economy--a feature
that has helped it weather external shocks in the past.
The move could be a harbinger of the shift to Asia some German
politicians and business leaders have called for in case U.S.
President Donald Trump delivers on his protectionist campaign
pledges.
Sales generated from exports to and imports from China reached
EUR169.9 billion ($179.72 billion) last year, putting the Asian
giant ahead of Germany's longtime biggest trading partner France.
Trade with China also overtook trade with the U.S., which was
Germany's number one trade partner a year earlier, according to
data released on Friday.
"The figures show that Germany is a successful export nation
which is conducting close trade relations with many countries," the
economics ministry said.
The fact that Germany's trade relations aren't dominated by any
single region has helped it overcome economic shocks in the past.
Dwindling trade with its eurozone neighbors during the region's
debt crisis, for instance, was offset by exports to the U.S. and to
emerging markets.
The drop in U.S. exports to Germany that underpinned the
country's ranking fall in the list of Germany's main trade partners
wasn't related to Mr. Trump's election, Germany's BGA export trade
group said. But it could become a trend if the president made good
on his threat to erect new trade barriers, causing others to do the
same.
"Amid protectionist plans of the new U.S. president, it can be
expected that trade relations between Germany and China will be
further expanded in the future," BGA President Anton Börner
said.
The German government has said it would look to strengthen trade
ties with Asia should the U.S. turn its back on free trade. And in
a widely noted speech at the annual World Economic Forum in Davos
last month, Chinese President Xi Jinping cast himself as a defender
of trade and globalization.
With its largely export-driven economy, Germany has long been a
champion of lowering trade barriers around the world despite facing
increasing grass roots hostility at home. Economists have warned it
would be among the biggest losers if the U.S. moved to build fresh
trade barriers.
Mr. Trump and some members of his administration have blamed
artificially weak currencies for the U.S.'s trade deficit with
China and Germany--an argument both countries have rejected. Last
month, he withdrew the U.S. from the Trans-Pacific Partnership and
said he would renegotiate the North American Free Trade Agreement
with Canada and Mexico.
Write to Andrea Thomas at andrea.thomas@wsj.com
(END) Dow Jones Newswires
February 24, 2017 07:34 ET (12:34 GMT)
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