Published December 23, 2025 | Version v1
Journal article Open

FOREIGN TRADE MODELS AND TRADE DIPLOMACY OF CHINA AND GERMANY: ANALYSIS OF TWO LEADING POWERS IN GLOBAL ECONOMIC COMPETITION

Description

This article examines the foreign trade models and trade diplomacy strategies of China and Germany-two of the world’s most influential economic powers-within the context of rising global competition. By analysing long-term trade trends, export-import structures, and state-driven economic policies, the study highlights how both countries have shaped international markets through distinct yet strategically coherent approaches.

Germany’s export-oriented economic model, built on technological innovation, industrial efficiency, and a strong manufacturing base, has positioned it as Europe’s leading trading nation.

China, on the other hand, has transformed from a manufacturing hub into a global economic powerhouse through large-scale industrial capacity, diversified trade partnerships, and proactive initiatives such as the belt and road initiative.

The comparison demonstrates how Germany relies heavily on high-value machinery, automobiles, and chemical products, while China leverages large-volume production, expanding logistics networks, and assertive state-backed trade diplomacy.

The article also explores how geopolitical tensions, supply-chain disruptions, and shifting global economic priorities are reshaping bilateral and multilateral trade patterns. By analysing recent trade data and policy developments, the study provides insights into how China and Germany are navigating new strategic realities-balancing cooperation, competition, and economic interdependence.

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