According to an analysis by EY, EU imports from China reached a record €22 billion, while exports fell by 34% to €16 billion, resulting in a €6 billion trade deficit. This decline is particularly concerning for the German automotive industry, which has seen its exports to China drop significantly, now ranking it as the sixth most important market for German manufacturers. The situation has led to increased pressure on the industry, with rising imports of electric vehicle batteries from China and a potential shift back to combustion engine production as companies reassess their strategies.