Bundesbank President Urges Wider Asia Trade, Less Reliance on China

In prepared remarks for an Oct. 17 panel in Bangkok, Deutsche Bundesbank President Joachim Nagel called for broader Asian trade ties and less reliance on critical imports from China as Europe faces a growing goods deficit.

The European Union (EU) imported €559.4 billion in goods from China in 2025 and exported €199.6 billion, leaving a €359.8 billion deficit. Imports rose 6.4% from 2024, while exports fell 6.5%.

Nagel described China as an important market for European goods while raising concerns about import dependence and industrial competition. He called for more resilient economic ties with China and stronger relationships across Asia.

Nagel noted export growth to South Korea, India and the Association of Southeast Asian Nations (ASEAN). He presented that growth separately from his recommendation to expand trade with Asian partners more broadly.

The EU concluded free-trade negotiations with India on Jan. 27, 2026. Its trade and investment negotiations with Indonesia concluded on Sept. 23, 2025. Those dates mark the end of negotiations, not the start of either agreement.

Nagel also called for stronger European infrastructure, more venture capital and greater computing capacity. In his prepared remarks, he pointed to a joint venture involving Taiwan Semiconductor Manufacturing Company (TSMC) that will create additional semiconductor capacity in Dresden. The project was an example of the industrial cooperation he wants Europe to pursue with Asian partners.