German Vice Chancellor Lars Klingbiel was scheduled to become the first representative of the current coalition government to visit China on Monday.
He is expected to discuss trade with Chinese officials, with an emphasis on rare earth elements.
However, there will also be hopes that Klingbiel, who is also Germany’s finance minister, can make progress in tackling concerns about the growing trade deficit with China and the risks it faces from its market.
“Access to critical raw materials and the reduction of China’s overcapacity in sectors such as steel and electric mobility are of great importance for Germany’s economy and jobs,” Klingbeil said before leaving.
Beijing overtook Washington as Berlin’s biggest trading partner for the first eight months of 2025, following the Trump administration’s introduction of major and frequently changing trade tariffs on the US.
Especially due to the US-China trade war, China is trying to sell its exports to other markets, which has created fear of dumping in Europe, which could impact domestic industries.
Germany now faces a record trade deficit of €87 billion ($101 billion) with China, according to forecasts from state-owned international economic promotion agency Germany Trade & Invest cited by Reuters.
This comes from a 13.5% year-on-year decline in German exports to China and an 8.3% increase in imports.
Also, China is a major supplier of rare earth materials and chips used in cars, which are vital to Germany’s struggling industrial sector.
The dispute between China and the Netherlands, which led to Beijing imposing limits on trade in rare earth materials, has set off alarm bells in Europe.
For a deeper look at what to expect from Klingbeil’s trip to China, check out DW’s analysis.