Thursday, November 20, 2025

China passes US to return as Germany’s top trade partner


By AFP
November 19, 2025


A container ship at the German port of Bremerhaven - Copyright AFP JOHN THYS

China has reclaimed its title as Germany’s top trading partner, dethroning the United States after President Donald Trump launched his tariff onslaught, official data showed Wednesday.

Total trade between Europe’s biggest economy and China from January to September this year grew slightly to nearly 186 billion euros ($215 billion), according to federal statistics agency Destatis.

In the same period, the figure for trade between Germany and the United States slowed by almost four percent to just under 185 billion euros, it said.

China had already been Germany’s top trading partner from 2016 to 2023 but the United States jumped into the top spot in 2024, as Berlin sought to reduce a long-standing economic reliance on China.

On the one hand the development “reflects the negative impact that US tariffs are having on German exports to the US,” ING economist Carsten Brzeski told AFP.

Under a deal struck in July, EU exports to the United States face a baseline levy of 15 percent — far higher than before Trump’s return to office.

The tariffs are a heavy burden for the already struggling German economy.

The US remains Germany’s top export market, for goods ranging from cars to pharmaceuticals, and Germany runs a hefty trade surplus with the United States.

The news also illustrated the challenge for Germany in trying to loosen deep economic ties with China, said Brzeski.

“It shows the ongoing dependence of the German economy and particularly industry on rare earths, semiconductors and other input goods from China,” he said.

Germany runs a substantial trade deficit with China.

This continued reliance is particularly difficult for Germany as “China is now perceived more as a competitor than as a trading partner,” LBBW bank analyst Jens-Oliver Niklasch told AFP.

China is no longer seen just as a key market for German exports, with many Chinese firms having emerged in recent years as competitors to top German companies.

The news comes as Finance Minister Lars Klingbeil is on a trip to China this week, the first representative of Germany’s ruling coalition, which took power in May, to visit the world’s number two economy.

Problems in traditional trading relationships are among the many problems facing Germany, which is expected to eke out just meagre growth this year after two years of recession.

Chancellor Friedrich Merz has vowed to revive the economy, including through a debt-fuelled spending blitz on defence and infrastructure.

Netherlands halts Nexperia takeover in gesture to China: minister


By AFP
November 19, 2025


The dispute erupted in September when the Dutch government effectively took control of Nexperia, based in the Netherlands but whose parent company is China's Wingtech - Copyright AFP JOHN THYS

The Netherlands has suspended its proposed takeover of Chinese-owned chip maker Nexperia in a sign of “good will” towards Beijing, Dutch Economy Minister Vincent Karremans said Wednesday.

The dispute erupted in September when the Dutch government effectively took control of Nexperia, which is based in the Netherlands but whose parent company is China’s Wingtech.

China responded by banning re-exports of the firm’s chips, triggering warnings from automakers of production problems as the components are critical to onboard electronics.

But Beijing announced over the weekend it would exempt some chips from the export ban, reportedly part of a trade deal agreed by President Xi Jinping and his US counterpart Donald Trump.

On Wednesday, Karremans said that “in light of recent developments, I consider it the right moment to take a constructive step by suspending my order under the Goods Availability Act regarding Nexperia”.

“We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world,” he said.

The takeover has been suspended rather than cancelled, and the minister can reinstate the measure later.



– National security –



Karremans said the decision had been made “in close consultation with our European and international partners” and in the wake of “constructive meetings with the Chinese authorities”.

“We see this as a show of good will. We will continue to engage in constructive dialogue with the Chinese authorities in the period ahead,” he said.

The Netherlands cited national security concerns and poor management when it moved to take control of Nexperia, which was once part of Dutch electronics giant Philips but bought out by Wingtech in 2018.

The Nexperia case was the first time the Dutch had invoked the Goods Availability Act, with the stated reason being that poor management could jeopardise the chip supply chain in Europe.

An Amsterdam corporate court subsequently ordered the suspension of Nexperia’s chief executive Zhang Xuezheng, citing poor leadership and poor preparation for incoming US trade restrictions.

Nexperia is no stranger to regulatory concerns in the west.

Three years ago, Britain blocked the company from buying its main semiconductor manufacturer, Newport Wafer Fab, following a “detailed national security assessment”.

And the United States put Wingtech on one of its “entity lists” last December, meaning the government believed it was acting against US national security and foreign policy interests.





China, Netherlands move to resolve Nexperia chip row

By AFP
November 19, 2025
Charlotte VAN OUWERKERK

The Netherlands said Wednesday it had suspended its proposed takeover of Chinese-owned chip maker Nexperia in a sign of “good will”, a move China welcomed as a positive “first step”.

The two sides are moving to resolve a dispute that erupted in September when the Dutch government effectively took control of Nexperia, which is based in the Netherlands but whose parent company is China’s Wingtech.

China responded by banning re-exports of the firm’s chips, triggering warnings from carmakers that their factories could grind to a halt without the components Nexperia supplies, which are critical to onboard electronics.

The Netherlands stepped back from its position after Beijing announced over the weekend it would exempt some chips from the export ban — reportedly part of a trade deal agreed by President Xi Jinping and his US counterpart Donald Trump.

Dutch Economy Minister Vincent Karremans said Wednesday that “in light of recent developments” he considered it “the right moment to take a constructive step by suspending my order under the Goods Availability Law regarding Nexperia”.

It was the first time the Dutch had invoked the Goods Availability Law — a Cold War-era law designed to keep vital supplies flowing during wartime.

“China welcomes the Dutch side’s initiative to suspend the administrative order, considering it the first step in the right direction towards properly resolving the issue,” a commerce ministry spokesperson said in a statement.

The takeover has been suspended rather than cancelled, and the minister can reinstate the measure later.



– National security –



The dispute between China and the Netherlands is part of a wider global battle for control of the supply of semiconductors, the tiny components used across many industries and electronic products.

Karremans said the Netherlands was “positive” about China’s recent moves to ensure chip supply to Europe and the rest of the world.

“We see this as a show of good will,” he said of his move to suspend the takeover, vowing to continue talking to Chinese officials.

The move was welcomed around Europe, with EU trade commissioner Maros Sefcovic saying it was “another key step in stabilising our strategic chip supply chains”.

Germany, a global centre for car making, also approved, with an economy ministry spokeswoman telling reporters in Berlin that “the situation is easing”.

However, China’s commerce ministry spokesperson warned there was “still a gap in addressing the root cause of the turbulence and chaos in the global semiconductor supply chain”.

The Netherlands had argued that poor management at Nexperia, which was once part of Dutch electronics giant Philips but bought out by Wingtech in 2018, risked jeopardising the chip supply chain in Europe.

An Amsterdam corporate court subsequently ordered the suspension of Nexperia’s chief executive Zhang Xuezheng, citing poor leadership and poor preparation for incoming US trade restrictions.

The decision drew Beijing’s wrath and Wingtech stressed that Wednesday’s move had not fully restored the Chinese firm’s control over Nexperia.

The firm is no stranger to regulatory concerns in the West.

The United States put Wingtech on one of its “entity lists” last December, meaning the government believed it was acting against US national security and foreign policy interests.

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