German Chancellor Friedrich Merz is currently on a three-day trip to China, accompanied by a delegation of German industry leaders. The visit includes meetings with Premier Li Qiang and President Xi Jinping, as China seeks to deepen ties amid global turbulence.
Trade Imbalance Concerns
A key focus of Chancellor Merz’s visit is the growing trade imbalance between Germany and China. In 2025, goods worth €170.6 billion came from China into Germany, an 8.8% increase, while German exports to China fell by 9.7% to €81.3 billion. Chancellor Merz has stated that this increasing trade deficit is “not healthy.”
Geopolitical Considerations
Discussions are similarly expected to cover the war in Ukraine, with Chancellor Merz intending to press China to leverage its influence with Moscow to facilitate bring the conflict to an end. He previously stated that major geopolitical questions can no longer be solved without involving China.
Industry Concerns
German businesses have expressed alarm over the trade imbalance, particularly in sectors like automobiles, machinery, and chemicals. Jürgen Matthes at the German Economic Institute (IW) believes distortions are due to “massive” Chinese subsidies and currency under-valuation. The situation, according to Matthes, “is eroding the core of German industry.”
Frequently Asked Questions
What is the primary purpose of Chancellor Merz’s trip?
The primary purpose of Chancellor Merz’s trip is to address the growing trade imbalance between Germany and China and to discuss geopolitical issues, including the war in Ukraine.
Who did Chancellor Merz meet with in Beijing?
Chancellor Merz met with Chinese President Xi Jinping and Premier Li Qiang.
What concerns has Chancellor Merz raised with Chinese leaders?
Chancellor Merz has raised concerns about the increasing trade deficit, the impact of Chinese subsidies on German industry, and the need for China to use its influence to help end the war in Ukraine.
As Germany and China navigate a complex relationship marked by economic interdependence and geopolitical differences, what role do you foresee for international cooperation in addressing global challenges?
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