If you think about how economies grow and become more mature, then China is a wonderful example. For the past 4 decades, Chinese needed western European and American companies and technology, 40 years ago it made cheap goods that would not be considered keepsakes by anyone. Then as time has gone, companies became better, education became better and now China can compete based on goods made in the China.

In an article by Rene Wagner of Reuters, Germany’s trade deficit with China widened in the first half of 2026, even as China remained its top trade partner according to data from Germany Trade & Invest (GT&I).

German exports fell 12% to $42.44 billion between January and June as Chinese firms cut reliance on European imports, making China only the 9th biggest market for German goods. As recently as 2021, China was the 2nd largest market.

China is selling more and more to Germany.

The reason for declining exports to China are the weak domestic economy and increasing (Chinese) focus on domestic value chains said GT&I expert Corinne Abele.

German firms are now producing more inside China itself. (Germany was one of many companies who saw a tremendous market in China and brought their best technology to China).

Far smaller economies like Austria and Switzerland have bought more German goods in 2026 than China has bought.

The US is Germany’s biggest market, with France and Netherlands next on the list.

Linking to dividend paying stocks, many dividend paying stocks are mature companies, they will go up in value, but you are generally not buying them to gain growth. Growth is wonderful and for utilities they are growing because of the need for electricity by AI. Mature companies see the world differently than growth companies, because they can have 10-year plans or 50-year plans, growth companies have much shorter plans. As countries mature, other things happen, just like when companies mature, expectations change.

There are more questions than answers, till the next time – to raising questions.