Germany’s Strategic Dilemma Between the US and China
Who Is the Better Partner?
First China, then the United States — the German Chancellor is visiting the world’s two biggest power centers, aiming to secure maximum benefits for Germany’s economy and its geopolitical position.
China remains the key market for Germany, with bilateral trade surpassing €250 billion in 2025. Yet Chancellor Merz faces a challenge: German products are losing ground, and he needs to boost their appeal in a highly competitive Chinese market.
Next stop: the United States, Germany’s second‑largest trading partner. But the long-standing transatlantic partnership has hit turbulence. President Trump’s tariff policies have strained relations, causing trade volumes to shrink by around 5 percent.
So the big question is: Where should Germany place its bets? Is China the more promising partner — or do the US offer the stronger long‑term alliance? In this interview, Thorsten Benner (GPPi), Noah Barkin, (Rhodium Group) and Meredith Crowley (Professor of Economics University of Cambridge) explore Germany’s strategic dilemma between Washington and Beijing: Who is the better partner for the future?
This interview was originally published by Deutsche Welle’s To the Point on February 26, 2026.
