Germany’s dramatic China car trade slump tests Merz’s tough talk at Davos

South China Morning PostCenter-RightEN 2 min read 100% complete by Finbarr BerminghamJanuary 23, 2026 at 02:21 PM
Germany’s dramatic China car trade slump tests Merz’s tough talk at Davos

AI Summary

short article 2 min

German Chancellor Friedrich Merz's pledge to make Europe the antithesis of state-sponsored unfair trade practices was put to the test as new figures revealed a dramatic slump in German car and car part shipments to China. Over 2024-2025, exports of large engine petrol saloon cars fell by 38% compared to the previous year, while smaller models saw a 39% decline. Germany's reluctance to participate in EU trade gambits against China was also evident, as it voted against imposing tariffs on Chinese-made electric vehicles in 2024. Merz's address at the World Economic Forum in Davos suggested that Berlin would take a special responsibility in addressing these issues. The slump highlights the pressure the German automotive industry faces from China, which has seen its shipments to Germany surge across many sectors. This marks a significant challenge for Merz and his efforts to reform Europe's trade policies.

Keywords

china trade slump 80% germany automotive industry 70% eu-china trade tensions 60% european reform 50% davos speech 50% automotive exports 40% china-germany trade reset 40%

Sentiment Analysis

Negative
Score: -0.30

Source Transparency

Source
South China Morning Post
Political Lean
Center-Right (0.50)
Far LeftCenterFar Right
Classification Confidence
90%

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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