China-Germany ties ahead of Merz’s visit
South China Morning Post
by Claudia HinterseerFebruary 20, 2026
AI-Generated Deep Dive Summary
As German Chancellor Friedrich Merz prepares for his visit to Beijing from February 24 to February 27, the dynamics of China-Germany relations have shifted significantly. While China remains Germany's top trading partner, a record €89 billion (US$105.6 billion) trade deficit has emerged, reflecting changing economic realities. The deficit is driven by China's economic slowdown reducing demand for German exports such as machinery and vehicles, while German imports of Chinese goods continue to grow.
The relationship between the two nations has become increasingly unbalanced due to diverging economic trends. China's slowing growth has diminished its appetite for high-value German products, while Germany's reliance on importing cheaper Chinese manufactured goods has increased. This trade imbalance is a key issue that will likely be discussed during Merz's visit, as both countries aim to find a more sustainable and mutually beneficial trade relationship.
This shift in economic dynamics highlights the broader challenges of global trade imbalances and the impact of slowing growth in major economies. For readers interested in world affairs, this story underscores the delicate balance of power between two of the world's largest economies and how geopolitical and economic factors can reshape international relationships. As China seeks to diversify its imports and Germany looks to expand exports beyond traditional markets, the outcome of these negotiations could have far-reaching implications for global trade and diplomacy.
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Originally published on South China Morning Post on 2/20/2026