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US Surpasses China As Germany’s Top Trade Partner Amid Shifting Economic Tides

For the first time since 2015, the United States has overtaken China as Germany’s largest trading partner, reflecting shifting global economic dynamics. Official data shows that declining exports to China and evolving trade patterns have reshaped Germany’s commercial landscape.

Key Trade Figures

  • Trade between Germany and the US grew by 0.1% year-on-year, reaching €252.8 billion in 2024, according to Germany’s Federal Statistical Office.
  • Meanwhile, China’s trade volume with Germany fell by 3.1% to €246.3 billion, ending its eight-year reign as Germany’s top partner.
  • The Netherlands, traditionally a strong trading partner, ranked third with €205.7 billion in trade, down 4.2% from the previous year.
  • Germany’s trade surplus with the US expanded significantly, rising to €70 billion in 2024 from €63.3 billion in 2023. This was driven by a 2.2% increase in exports to €161.4 billion, while imports from the US declined 3.4% to €91.4 billion.
  • In contrast, Germany’s trade deficit with China widened, as imports from China dropped 0.3% to €156.3 billion, while German exports to China saw a steeper 7.6% decline, reaching €90 billion.

Germany’s Economic Challenges

Germany, Europe’s largest economy, has struggled to sustain growth over the past five years. Once a dominant force in global trade, particularly in industrial machinery and automotive exports, the country now faces mounting competition from Chinese manufacturers. A sluggish domestic economy and geopolitical trade shifts have further compounded these challenges.

Looking Ahead

As Germany prepares for a new government following the upcoming elections, reviving economic growth will be a top priority. Trade relations with both China and the United States will remain critical, especially as Germany navigates the policies of the next US administration. The decisions made in the coming months could shape the country’s trade strategy for years to come.

Nvidia Launches Open AI Security Alliance With Microsoft, Palantir And SpaceX

Nvidia and a coalition of technology companies on Monday launched the Open Secure AI Alliance, a new initiative aimed at strengthening artificial intelligence security through open models.

The alliance was announced days after a cyberattack involving OpenAI models targeted AI platform Hugging Face, an incident that renewed debate over whether open or closed AI systems are better suited for cybersecurity.

Open Models at the Core

Nvidia said the alliance will focus on identifying, disclosing and mitigating AI security vulnerabilities using open technologies.

“The Open Secure AI Alliance will work to remediate and disclose vulnerabilities using open technologies,” the company said in a statement. “The recent Hugging Face security incident delivered a clear reminder: cyber defenders need open, frontier agentic systems for self-defense.”

The alliance includes Microsoft, SpaceX, Palantir and dozens of other technology companies from the U.S. and Europe.

Open-weight models can be downloaded, modified and deployed on an organisation’s own infrastructure, allowing security teams to inspect and adapt them for defensive purposes. By comparison, proprietary models from companies such as OpenAI and Anthropic are generally accessed through controlled platforms.

U.S. Scrutiny of Chinese AI Grows

The initiative comes as U.S. policymakers weigh potential restrictions on Chinese AI models, particularly open-weight systems. Officials have raised concerns that some Chinese companies may be using distillation techniques to extract knowledge from leading U.S. AI models.

Treasury Secretary Scott Bessent said last week that Chinese companies involved in such activity could face sanctions.

Chris McGuire, senior fellow for China and emerging technologies at the Council on Foreign Relations, told CNBC that potential restrictions could extend beyond model downloads to include API access and cloud-hosted inference services. He added that the debate in Washington is centred on intellectual property protection rather than opposition to open-source AI.

Industry Pushes Back

Last week, Nvidia, Microsoft, Meta, Palantir and more than 20 other companies urged policymakers not to impose what they described as “premature restrictions” on open-weight AI models, warning such measures could reduce competition and encourage innovation to move overseas.

The launch of the Open Secure AI Alliance signals growing industry support for open AI systems as governments consider new regulatory and security measures.

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