Beijing, China – German Chancellor Friedrich Merz arrived in Beijing today for a two-day visit focused on securing a more equitable economic relationship with China and urging Beijing to leverage its influence in ending Russia’s war in Ukraine. The visit, occurring less than a month after similar trips by French President Emmanuel Macron and British Prime Minister Keir Starmer, underscores a coordinated European effort to engage with China on critical geopolitical and economic issues.
Merz’s primary objective is to address the growing trade imbalance between Germany and China. According to data released by German federal statistics, imports from China to Germany reached €170.6 billion in 2025, an 8.8% increase year-over-year, while German exports to China fell by 9.7% to €81.3 billion. This disparity, which has seen China reclaim its position as Germany’s largest trading partner – surpassing the United States – is raising concerns about the erosion of German industrial competitiveness, particularly in sectors like automotive, machinery, and chemicals.
“We want a partnership with China that is balanced, reliable, regulated and fair,” Merz stated prior to his departure, framing the visit as an opportunity to establish a more sustainable economic relationship. He emphasized the importance of a unified European approach, noting that his trip is part of a broader series of engagements with Beijing by key European leaders. The Chancellor also highlighted the need for cooperation on global challenges, stating that “the great political global problems can no longer be addressed today without involving Beijing.”
The trade imbalance is attributed, in part, to substantial Chinese state subsidies and potential currency undervaluation, according to Jürgen Matthes, head of International Economic Policy at the German Economic Institute (IW). Matthes suggests that the price advantages enjoyed by Chinese manufacturers are not solely the result of innovation and efficiency. German leaders are seeking commitments from China to reduce manufacturing overcapacity, particularly in emerging industries like electric vehicles and solar panels, and to remove barriers to entry for foreign companies operating within the Chinese market.
Beyond economic concerns, Merz is expected to press China to play a more active role in resolving the conflict in Ukraine. While China has publicly stated its commitment to a peaceful resolution and called for a comprehensive, durable, and binding peace agreement, many European governments have expressed frustration over China’s reluctance to exert greater pressure on Moscow to end the hostilities. Beijing maintains a neutral stance on the conflict and continues to maintain strong diplomatic and commercial ties with Russia.
The timing of Merz’s visit coincides with a broader wave of global leadership engagement with China, as Beijing navigates increasing scrutiny over its trade practices and its role in the international order. China is facing pressure from the United States, including potential tariffs and demands for greater economic concessions. A commentary published by the state-run Xinhua news agency emphasized the shared responsibility of China and Germany, as major economies and proponents of multilateralism, to maintain stability in global supply chains and oppose protectionism and economic coercion.
Merz’s agenda includes discussions on systemic overcapacities, export restrictions, and market access limitations that are seen as distorting competition. He indicated a desire to “find a solution” to these issues, aiming for a more level playing field for German businesses operating in China. The Chancellor’s visit also reflects a growing European desire for greater strategic autonomy, both economically and militarily, in a shifting global landscape. This push for independence is partly a response to perceived inconsistencies in U.S. Foreign policy, including former President Trump’s demands for increased European defense spending and even the cession of Greenland to the United States.
The German delegation accompanying Merz includes representatives from a significant number of German companies, underscoring the economic importance of the visit. The outcome of these discussions will likely shape the future of German-China relations and have broader implications for the European economy and the global trade environment.
