Frequent disputes and frictions within the German ruling coalition has led to a constant drop of its support rating. Although hit heavily by the world financial crisis in 2009，the German economy began a full recovery from the beginning of 2010，however，its budgetary deficit and debt level have reached a new high. The government is planning to implement an austerity plan to make its fiscal situation in conformity to the requirements of the Stability and Growth Pact. It will also extend the period of the validity for the Short-time Working Benefit applied for the sake of dealing with the crisis. At the same time，its reform of health care system has not yet been kicked off and the risk of poverty gained up in some degree. The crisis encountered by the euro group has posed a range of challenges to Germany. China-Germany relations start to take a favourable turn out of the common need of coping with the financial crisis.