Merz’s China Trip: Balancing Business with Geopolitical Concerns

by Chief Editor

German Chancellor Friedrich Merz is preparing for a three-day visit to China beginning February 24th, a trip occurring as global power dynamics shift. While sensitive topics such as Russia’s support and threats to Taiwan are expected to be addressed, Beijing appears relaxed about the visit, signaling a changed relationship.

A Carefully Prepared Visit

Chancellor Merz spent two hours in preparation for the trip, meeting with China experts including Sinologist Stephan Thome and Jörg Wuttke, a former president of the European Chamber of Commerce in Beijing. Merz reportedly asked precise questions and took extensive notes, particularly regarding how to establish a connection with Xi Jinping. He was also recommended the book “Breakneck” by Dan Wang, which contrasts Western and Chinese systems of governance.

Did You Know? More than one million jobs in Germany are dependent on exports to China.

A Shifting Geopolitical Landscape

Merz’s visit follows recent trips to Beijing by Canada’s Premier Mark Carney and Britain’s Premier Keir Starmer, both seeking to stabilize relations after periods of distance. The timing of Merz’s visit – after stops in India and with other Asian nations – is seen as a signal of a more distanced approach compared to previous administrations.

The trip occurs against a backdrop of increasing economic ties despite a hardening political tone. While the German government previously emphasized “de-risking” – reducing dependencies – economic integration with China continues to grow. In 2024, China reclaimed its position as Germany’s largest single trading partner, with trade totaling 251.8 billion euros.

Expert Insight: The simultaneous pursuit of strong economic ties alongside critical rhetoric regarding China’s political system reveals a complex and potentially contradictory approach, suggesting a lack of consensus within German policy and industry regarding the future of the relationship.

A Critical Stance

Chancellor Merz has publicly characterized the current era as a “new systemic conflict” between liberal democracies and autocratic states, identifying China as part of an “axis of autocracies” alongside Russia, Iran, and North Korea. He has also stated that China is pursuing a “global claim to shape events” and could soon match the United States in military strength.

Despite this critical stance, Merz is traveling with a 30-member business delegation, including CEOs from major German companies like Bayer, Volkswagen, and Siemens. Over seven billion euros in new German investment flowed into China last year – the highest amount in at least four years.

What May Happen Next

Analysts expect Merz to raise concerns about potential Chinese support for Russia’s war in Ukraine, though a significant breakthrough is not anticipated. The primary focus of the trip is likely to be economic pragmatism. Germany’s limited leverage, coupled with China’s perception of Germany’s economic challenges, suggests limited ability to influence Chinese policy. Substantial progress on issues like Taiwan is also not expected, with the German side expected to reiterate its support for the status quo.

Frequently Asked Questions

What is the purpose of Chancellor Merz’s trip to China?

The trip is intended to discuss strategic partnerships and address sensitive issues like Russia’s support and the situation in Taiwan, while also maintaining economic ties.

What is the current state of trade between Germany and China?

China is Germany’s largest single trading partner, with trade totaling 251.8 billion euros in 2024. However, the EU has a significant trade deficit with China, importing approximately 300 billion euros more in goods than it exports.

What has been Chancellor Merz’s public stance on China?

Chancellor Merz has been critical of China’s “global claim to shape events” and has identified China as part of an “axis of autocracies.”

As Germany navigates a changing global landscape, how will it balance its economic interests with its political concerns regarding China’s growing influence?

You may also like

Leave a Comment