Luxembourg’s reliance on Chinese imports concentrated in electronics

Luxembourg is not heavily dependent on Chinese imports overall, but relies strongly on the superpower for certain key products, according to new data from the national statistics agency Statec, highlighting uneven exposure as global trade tensions persist.

China accounted for around 3% of Luxembourg’s total imports in 2025, a relatively modest share compared with many larger European economies, Statec said in a report published on Wednesday.

However, the picture changes sharply when looking at specific goods, notably electrical, audio and video equipment, where roughly one in five imports originated from China, Statec said in its January economic flash. The share has grown sharply in the last year.

The Grand Duchy now has a large trade deficit with China, importing goods worth €922 million and exporting €346 million, mainly in valves and copper foil, the agency said.

Beyond trade in goods, the figures do not capture Luxembourg’s financial exposure to China through investment funds and portfolios. That exposure is not directly reflected in import statistics.

The findings come as China posted a record trade surplus in 2025, despite higher US tariffs.

According to Statec, Chinese exports rose by 5.5% last year while imports stagnated, reflecting weak domestic demand and the country’s continued export-led growth model.

Faced with trade restrictions from the United States, China has increasingly redirected exports towards other markets, including Europe, and via third countries such as Vietnam and Thailand.

This shift has allowed Chinese manufacturers to maintain export volumes even as geopolitical and trade tensions intensified.

The data also comes against a backdrop of continued uncertainty in global trade. While Europe has so far avoided the most aggressive tariff measures seen between the US and China, policymakers have warned of increased trade diversion as exporters seek alternative markets.

Statec’s broader outlook for the economy remains cautiously positive. Luxembourg’s economy is forecast to grow by 1% in 2025, accelerating to 1.7% in 2026, supported by a gradual recovery in domestic demand and improved external conditions.

However, the agency warned that risks remain skewed towards the negative, particularly if geopolitical tensions escalate further or if global trade flows become more fragmented.