China remains German electrical industry's top trading partner

BERLIN - China remained the German electrical industry's top trading partner at the beginning of the year, the country's Electro and Digital Industry Association (ZVEI) said on Thursday.

In January, German exports to China increased by 3.1 percent year-on-year to 1.9 billion euros ($2 billion), while imports from China rose by 12 percent to 7.4 billion euros, according to ZVEI.

Last year, exports of German electronic equipment to China were up 5.5 percent to 26.5 billion euros, while imports from the country increased by 23.5 percent to 84.4 billion euros.

Many product groups from China were "indispensable for the German economy," according to an analysis published by the Kiel Institute for the World Economy (IfW Kiel) in mid-February. Electronic goods, such as laptops, reached an import share of around 80 percent.

According to the Federal Statistical Office (Destatis), China remained Germany's most important trading partner for the seventh year in a row in 2022. The United States and the Netherlands followed in second and third place.

For the German electrical and digital industry, the development of exports "initially regained momentum" at the start of 2023. Nominal exports increased by 17.8 percent in January to 20.5 billion euros.

"This was the highest export value ever achieved in a January," ZVEI Chief Economist Andreas Gontermann said in a statement. "The percentage increase was higher than it has been in a year and a half, but it also includes an inflationary component."