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

After German Chancellor Friedrich Merz pledged to make Europe “the antithesis to state-sponsored unfair trade practices”, the massive pressure the country’s automotive industry faced from China was laid bare in new figures. Over the course of 2025, German car and car part shipments to China saw dramatic slumps, while Chinese shipments to Germany across many of the same sectors soared. Germany has been a reluctant participant in many of the EU’s most forceful trade gambits against China, as it...