German imports from and exports to China rose to €170 billion (£143billion) last year, Federal Statistics Office figures reviewed by Reuters showed.
The development is good news for the German government, which has made it a goal to safeguard global free trade after US President Donald Trump threatened to impose tariffs on imports and his top adviser on trade accused Germany of exploiting a weak euro to boost exports.
German Vice Chancellor Sigmar Gabriel has suggested that the European Union should refocus its economic policy toward Asia, should the Trump administration pursue protectionism.
Anton Boerner, head of the BGA trade association, said: "Given the protectionist plans of the new US president one would expect that the trade ties between Germany and China will be further strengthened."
The main reason for the reduced trade volume with the US was a drop in American exports to Germany, Mr Boerner added.
Neighbouring France remained the second-most important business partner with a combined trade volume of €167 billion (£141 billion).
The United States came in third with €165 billion (£139 billion).
In 2015, the United States had climbed to the top of the list of Germany's most important trading partners, overtaking France for the first time since 1961.
Separately, Germany's Committee on Eastern European Economic Relations said on Friday it expected exports to Russia will probably rise at least 5 percent this year, their first increase in years given Western sanctions.
Clemens Fuest, head of the Ifo economic institute, said: "Optimism among German exporters is rising further."
He said export expectations increased in February, pointing to overall strong trade figures in the first quarter of 2017.
Looking at exports alone, the United States remained the biggest client for products "Made in Germany" in 2016, importing goods from Europe's biggest economy worth some €107 billion (£90 billion).
France remained the second-most important single export destination for German goods with a sum of €101 billion (£85 billion), the data showed.
Britain came in third, importing German goods worth €86 billion (£72 billion).
Britain accounted also for the biggest bi-lateral trade surplus: Exports surpassed imports from Britain by more than €50 billion (£42 billion), the figures showed.
The United States came in second with a bi-lateral trade deficit: German exports to the US surpassed imports from there by €49 billion (£41 billion).
This means that Britain and the US together accounted for roughly 40 per cent of Germany's record trade surplus of €252.9 billion (£213 billion) in 2016.
The figures are likely to fuel the debate about Germany's export performance, its trade surplus and global economic imbalances ahead of a meeting of G20 finance ministers and central bank governors in Baden-Baden mid-March.
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