(Yicai) Aug. 13 -- With the upgrading of China's domestic industrial chain, imports of equipment from Germany have been declining, with several other European nations accelerating efforts to seize the resulting opportunities.

China's imports from Germany dropped 1.7 percent to CNY313.2 billion (USD46.4 billion) in the first half from a year earlier, according to data from the General Administration of Customs of China. Meanwhile, imports from France and Ireland jumped 19 percent, from Greece, Spain, and Hungary climbed around 15 percent, and from Italy rose 13 percent.

The weakening of Germany's exports to China is mainly due to the upgrading of the Chinese high-end equipment manufacturing industry, which has reduced its reliance on German industrial product imports, Zhan Yubo, deputy director at the Shanghai Academy of Social Sciences' Institute of Economics, told Yicai. Moreover, German firms are expanding localized production in China, further decreasing exports to the country, he added.

Declining imports have not been affecting bilateral trade between the two countries, which still expanded 7.6 percent to CNY781.1 billion in the six months ended June 30 from the same period last year, with China remaining Germany's largest trading partner in the period, Zhan said.

High energy costs in Europe and the European Union’s de-risking policies have led to a shift in China's trade strategies to partner with lower-cost regions in Central, Eastern, and Southern Europe, Zhan noted. Countries like France and Italy possess advantages in consumer goods, agricultural products, and high-end manufacturing, complementing the equipment categories offered by Germany.

China's foreign trade with the EU surged 10 percent to CNY3.1 trillion (USD459.6 billion) in the first half from a year earlier, with imports and exports increasing 4.9 percent to CNY940.2 billion and 13 percent to CNY2.2 trillion, respectively, GACC data also showed.

Chinese investment in Germany has also remained strong. According to data from Germany Trade and Invest, the number of investment projects by Chinese companies in the country increased 15 percent to 228 last year from the previous one, surpassing the United States for the first time since 2017 to become the largest source of foreign investment projects in Germany.

Chinese foreign direct investment in the EU and the United Kingdom soared 67 percent to EUR16.8 billion (USD19.4 billion) in 2025 from the year before, reaching the highest level since 2018, according to a report jointly released by US consulting firm Rhodium Group and German think tank Mercator Institute for China Studies. Hungary, Germany, and France accounted for 23 percent, 15 percent, and 12 percent, respectively, of China's total FDI in the EU and UK.

Editors: Dou Shicong, Futura Costaglione