Berlin – German Chancellor Friedrich Merz is embarking on a high-stakes trip to China next week, a move signaling Berlin’s continued commitment to economic engagement with the world’s second-largest economy, even as concerns mount over competition and geopolitical alignment. The visit, beginning shortly after the Chinese New Year celebrations, marks Merz’s first official trip to the country since taking office in May.
The trip, announced at a recent congress of his conservative CDU party in Stuttgart, is framed by the German government as a search for the right balance of cooperation
with China, according to a government spokesperson. Merz himself expressed optimism on X (formerly Twitter), stating, May the Year of the Horse bring strength and give new impetus to German-Chinese relations
, adding that he looks forward to the journey.
The timing of the visit is particularly noteworthy, coming at a critical juncture for German automakers. These companies are facing increasing pressure from Chinese competitors in both the domestic and international markets. The German automotive industry, a cornerstone of the nation’s economy, is keenly aware of the need to navigate this evolving landscape.
Merz’s itinerary includes meetings with both Premier Li Qiang and Chinese leader Xi Jinping in Beijing. He is also scheduled to visit the Forbidden City, a symbolic gesture of cultural exchange. Beyond the political meetings, the Chancellor will tour facilities of Mercedes-Benz in Beijing, highlighting the established presence of German automotive manufacturing in China.
The trip isn’t solely focused on traditional industries. Merz will also travel to Hangzhou, a hub of technological innovation, to visit Unitree, a Chinese robotics firm, and Siemens Energy, a German turbine-maker. This inclusion underscores Germany’s interest in fostering collaboration in emerging technologies, even as it acknowledges the competitive pressures.
The two-day visit will center on the themes of competition
and finding the right balance of cooperation
, a government spokesperson emphasized. This suggests a nuanced approach, recognizing both the opportunities and challenges presented by the relationship. Germany, while seeking to maintain strong economic ties, has also expressed wariness over Beijing’s growing assertiveness and its stance on the war in Ukraine.
Recent trade figures released by Germany’s Federal Statistical Office reveal the complex dynamics at play. China reclaimed its position as Germany’s largest single trading partner in 2023, with total trade volume reaching 251.8 billion euros ($297 billion). This reverses a trend from 2024, when the United States briefly held the top spot. However, trade with the U.S. Remains substantial, at 240.5 billion euros, indicating Germany’s efforts to diversify its trade relationships.
The visit comes as Germany continues to grapple with the delicate balance of maintaining economic ties with China while also seeking to avoid overreliance and diversify its supply chains. This strategy reflects a broader European effort to navigate the geopolitical complexities of a world increasingly shaped by assertive global powers.
The trip also occurs against the backdrop of broader trans-Atlantic efforts to repair trust, as evidenced by recent security conferences and diplomatic engagements. While not directly linked to Merz’s China visit, these parallel initiatives suggest a coordinated approach to international relations.
The focus on competition during the visit is particularly telling. It acknowledges the growing challenge posed by Chinese companies, not just in the automotive sector, but across a range of industries. Germany’s strategy appears to be one of engaging with China on a level playing field, seeking to ensure fair competition and protect its own economic interests.
The inclusion of Siemens Energy and Unitree in the itinerary signals Germany’s interest in exploring opportunities for collaboration in cutting-edge technologies. This suggests a willingness to engage with China not just as a manufacturing hub, but as a potential partner in innovation.
While the visit is primarily focused on economic matters, it also carries significant political weight. The meetings with Xi Jinping and Li Qiang will provide an opportunity for Merz to discuss broader geopolitical issues, including Ukraine and regional security concerns. The outcome of these discussions could have implications for Germany’s foreign policy and its relationship with other major powers.
The German government has been careful to emphasize its commitment to maintaining a balanced approach to China. The goal is to foster cooperation where it is mutually beneficial, while also addressing concerns about unfair trade practices and geopolitical risks. Merz’s visit represents a key step in this ongoing effort.
