Beijing – German Chancellor Friedrich Merz is scheduled to begin a visit to China this week, marking his first trip to the country since assuming office and signaling a renewed effort by Berlin to engage with the world’s second-largest economy. The visit, set to begin on , comes at a complex juncture for both nations, as Germany navigates shifting global trade dynamics and seeks to balance its economic interests with broader geopolitical considerations.
Merz will be received in Beijing by Premier Li Qiang and Chinese leader Xi Jinping, according to government spokesperson Sebastian Hille. The itinerary also includes a visit to Hangzhou, a major economic and technological hub in southeastern China. The overarching theme of the trip, Hille stated, will be “competition,” with a focus on achieving “the right balance of cooperation” between the two countries.
The timing of the visit is particularly noteworthy. Germany’s trade relationship with China has seen a resurgence, with China reclaiming its position as Germany’s largest single trading partner in , surpassing the United States. Total trade volume reached 251.8 billion euros (approximately $297 billion) last year, a figure that underscores the enduring economic ties between Berlin and Beijing. However, trade with the U.S. Experienced a decline, falling to 240.5 billion euros.
This renewed focus on strengthening ties with China also occurs against a backdrop of increasing U.S. Tariffs and protectionist measures, which are posing challenges to Germany’s economic growth. Berlin appears to be seeking to diversify its economic partnerships and reduce its reliance on any single market, a strategy that aligns with a broader European trend of reassessing its economic dependencies.
The German Chancellor’s trip is expected to address the intensifying competition faced by German automakers in the Chinese market. Chinese electric vehicle manufacturers are rapidly gaining market share, challenging the dominance of established European brands. The visit to Mercedes-Benz’s facilities in Beijing and the robotics firm Unitree and turbine-maker Siemens Energy in Hangzhou suggests a desire to understand the technological advancements driving this competition and explore potential areas for collaboration.
While seeking to deepen economic cooperation, Germany has also maintained a cautious stance regarding China’s geopolitical posture. Berlin has expressed concerns over Beijing’s growing assertiveness and its refusal to condemn Russia’s invasion of Ukraine. The German government has emphasized the importance of maintaining a “critical dialogue” with China on issues such as human rights and international law.
The visit also reflects a broader European debate about how to manage relations with China. Some member states advocate for a more assertive approach, while others prioritize maintaining economic ties. Germany, as the EU’s largest economy, plays a crucial role in shaping the bloc’s overall China policy.
According to a statement released by Chancellor Merz prior to the trip, he is traveling with a “large business delegation,” indicating a strong emphasis on facilitating commercial opportunities and fostering partnerships between German and Chinese companies. He expressed his hope that the Year of the Horse, according to the Chinese zodiac, would “bring strength and give new impetus to German-Chinese relations.”
The two-day visit will focus on finding a balance between competition and cooperation, a government spokesperson indicated. This suggests a pragmatic approach, acknowledging the challenges and opportunities presented by the evolving relationship. Germany aims to secure cooperation in areas of mutual interest, such as climate change and global health, while also addressing concerns related to fair trade practices and market access.
The trip is also seen as an attempt to reset strained trade relations. While trade volumes remain substantial, tensions have emerged over issues such as intellectual property rights, market access barriers, and the trade imbalance. Chancellor Merz will likely seek to address these concerns during his meetings with Chinese leaders.
The visit comes after a high-level meeting in November between German Vice Chancellor and Finance Minister Lars Klingbeil and Chinese Vice Premier He Lifeng, signaling a continued dialogue at the highest levels of government. This ongoing engagement underscores the importance both countries place on maintaining a stable and productive relationship.
The international implications of this visit extend beyond the bilateral relationship between Germany and China. It signals a potential recalibration of Europe’s strategic alignment, as Germany explores closer ties with China amidst growing uncertainty in the global economic order. The outcome of the visit will be closely watched by other major powers, including the United States, as they assess the evolving dynamics of international trade and geopolitical competition.
