Arsenal sub keeper Emiliano Martinez was the shoot-out hero in the sweltering heat of Shanghai.
Martinez made two saves from David Alaba and Juan Bernat as Arsenal beat the Germans on penalties.
It came after Alex Iwobi’s injury time leveller cancelled out Robert Lewandowski’s early penalty.
Aaron Ramsey, Nacho Monreal and Alex Iwobi were on target from the spot for Arsenal who then lifted the trophy.
But the scorching temperature saw players really struggle as Sead Kolasinac looked ill before coming off while Per Mertesacker also pulled out just before kick-off.