German exports to China in May suffered one of their biggest falls, underlining the faltering trade between the two countries even before escalating tensions threatened higher tariffs on key shipments. The Federal Statistical Office said on Friday that German exports to China dropped 14 per cent to €7.5bn in May from a year earlier, underlining how what was once a major source of growth for Europe’s largest economy has become a source of vulnerability.
” Economists, however, cautioned against reading too much into the sharp fall in German exports to China, because monthly trade data can be lumpy and the latest drop followed a 13 per cent annual rise a month earlier. In the first five months of this year, total German exports to China have fallen only slightly to €40.3bn, down from €40.7bn last year. But last year’s figures were more than 10 per cent lower than 2022 levels.