By Yin Hua, Vision Times
German Chancellor Friedrich Merz arrived in Beijing on Feb. 25 for a two-day official visit, leading a delegation of roughly 30 top executives from companies including Volkswagen, Mercedes-Benz, Siemens, BMW, Bayer, and Adidas.
The trip, which marks Merz’s first to China since taking office in May 2025, comes amid mounting geopolitical turbulence, renewed U.S. tariff pressure under President Donald Trump, and intensifying debate in Germany over economic dependence on China.
Upon his arrival, Merz posted in Chinese on social media: “Berlin and Beijing are nearly 7,500 kilometers apart. For many years we have gladly bridged this distance. For me, maintaining and deepening our diplomatic and economic relations is of great importance. To achieve this, we need open channels of dialogue.” He emphasized building a “balanced, reliable, and fair” partnership while avoiding “decoupling.”
RELATED: Germany’s Merz Seeks New ‘Strategic Partnership’ With Beijing Amid Trade and Security Tensions
Five agreements signed with Li Qiang
Success
You are now signed up for our newsletter
Success
Check your email to complete sign up
On the first day, Merz met Chinese Premier Li Qiang at the Great Hall of the People. Li called for strengthened cooperation, defense of multilateralism, and opposition to protectionism. Merz acknowledged Germany’s desire to reduce strategic dependencies but said Berlin would “strengthen cooperation where possible.”
Following the meeting, the two sides signed five intergovernmental agreements. These include continued collaboration on climate and green transition initiatives; cooperation on animal disease control — paving the way for resuming German pork exports suspended in 2020; the reopening of chicken paw trade; and media and sports cooperation agreements involving China’s state broadcaster and German football and table tennis associations.
Later that evening, Merz met with Chinese leader Xi Jinping at Diaoyutai State Guesthouse. Xi praised Germany’s “pragmatic” China policy and expressed hope that Berlin would continue constructive engagement. Merz reaffirmed Germany’s commitment to dialogue and proposed restarting the China-Germany intergovernmental consultation mechanism.
Merz also announced that China would place a major new order with Airbus totaling 120 aircraft, with additional contracts expected for German firms.
Trade imbalance and fair competition
Despite highlighting economic cooperation, Merz acknowledged deep concerns. Germany’s trade deficit with China has exceeded €80 billion, approaching €90 billion in 2025, nearly quadruple its level five years ago. He described the imbalance as “unhealthy,” noting discussions on market access, fair competition, rare earth supply security, state subsidies, currency issues, and industrial overcapacity.
At a roundtable with the German-Chinese Economic Advisory Council, Merz stressed the importance of “fair competition” and reminded participants that Germany operates within the European Union framework, meaning trade and monetary decisions must align with EU policy.
Security issues were also raised. Merz urged Beijing to use its influence to help end the war in Ukraine, stating, “We know that signals sent by China are taken very seriously in Moscow.” He also called on China not to provide dual-use goods to Russia.
A structural ‘China crisis’
Domestically, the visit unfolds against rising public unease. A Forsa poll conducted Feb. 4–5 found that 53 percent of Germans support reducing economic dependence on China, even if it carries economic costs. Support was particularly strong among Green Party and CDU/CSU voters.
German media commentary has urged Merz to avoid appearing submissive. Handelsblatt warned that the chancellor “must not bow his head,” while Der Spiegel argued he should speak the language of power politics with confidence but without naivety. Süddeutsche Zeitung emphasized negotiating from a position of equality, leveraging Europe’s market weight rather than seeking favor.
Former Canadian diplomat Michael Kovrig offered a stark assessment of what he called Germany’s “China crisis.” Writing on Feb. 25, he argued that Germany faces a “triple dilemma”: Russian aggression, geopolitical uncertainty from “America First,” and what he termed China’s “hegemonic mercantilism.”
Kovrig contends that Germany’s once-stable economic model, U.S. security guarantees, Russian energy, and Chinese trade, has collapsed. He warns of a “Second China Shock,” in which China’s industrial policies, including “Made in China 2025,” have propelled it up the value chain, directly competing with German core industries.
On de-risking
China posted a record $1.2 trillion trade surplus in 2025. Meanwhile, Germany’s auto exports to China fell nearly 70 percent between 2022 and 2024, declining another 33 percent in 2025. Machinery, metals, chemicals, and pharmaceuticals have also seen export contractions. German manufacturing has lost more than 200,000 high-quality jobs since 2019.
RELATED: Marco Rubio Frames US-Europe Ties as Shared Destiny at 2026 Munich Security Conference
Kovrig highlights asymmetric dependency: Germany remains reliant on China for rare earth processing, cobalt, graphite, lithium, and key intermediate goods, while China has reduced its reliance on German imports. He warns that without strategic recalibration, including EU-level trade tools and domestic economic security planning, Germany risks accelerated deindustrialization.
Merz’s visit reflects Berlin’s attempt to recalibrate rather than rupture ties. His approach balances calls for “de-risking” with the reality that China remains Germany’s largest trading partner.
In an era of shifting global power dynamics and renewed trade tensions, the visit underscores both opportunity and vulnerability. Whether Germany can secure fairer access while reducing structural exposure may determine the future trajectory of Europe’s largest economy.
