Canada automotive sector

China Overtakes US as Germany’s Top Trading Partner Amidst American Isolation

As Chancellor Friedrich Merz embarks on his first visit to Beijing, new figures reveal China has surpassed the US as Germany’s leading trading partner for 2025. This shift in trade dynamics, with China accounting for €251 billion in trade compared to the US’s €240 billion, occurs as Germany navigates complex economic ties with China, particularly within its crucial automotive sector. Chancellor Merz’s agenda includes discussions on critical geopolitical issues and trade relations, underscoring Germany’s commitment to dialogue despite broader EU efforts to “derisk” from Chinese supply chains.

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German Auto Industry Explores Canada Expansion

Berlin’s economic minister has confirmed that the German auto industry is actively seeking to expand its presence in Canada, finding the country’s new auto sector strategy highly attractive. Discussions are underway, with a willingness from German carmakers to invest due to favorable conditions, building on existing commitments like Volkswagen’s battery factory in Ontario. This interest is independent of any submarine bid, but stems from Canada’s significant importance in regaining manufacturing jobs. Ultimately, such investments will depend on private companies determining optimal production conditions within Canada.

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