German chancellor lands in Beijing for inaugural China trip
BBC World
February 25, 2026
AI-Generated Deep Dive Summary
Germany's Chancellor Friedrich Merz arrived in Beijing for his first official visit to China, amid growing concerns over a significant trade imbalance between the two nations. Last year, imports from China into Germany were valued at €170.6 billion, nearly double the €81.3 billion worth of exports sent back to China. This disparity has raised alarms among German businesses and policymakers, who warn that it is eroding key industries like automotive, machinery, and chemicals. The imbalance is attributed to Chinese subsidies and currency undervaluation, which provide an unfair competitive edge in global markets.
Merz emphasized the need for a "balanced, reliable, regulated, and fair" partnership with China during his visit. He also highlighted the importance of leveraging China's influence over Russia to help resolve the conflict in Ukraine. The chancellor brought a delegation of German business leaders to address pressing issues such as export controls on critical rare earths and trade distortions. These talks come at a time when Germany, as Europe’s largest economy, is reevaluating its approach to trade with China after decades of promoting "change through trade."
The trade deficit has left European leaders grappling with how to offset the impact of cheap Chinese goods. While the EU has filed numerous anti-dumping cases against China, domestic production and reduced foreign dependencies remain challenging to implement. Analysts note that the bloc struggles to effectively use traditional trade defense tools like tariffs compared to the U.S., which can employ them more flexibly.
The visit also underscores the broader global context of shifting trade dynamics. As Europe contends with rising production costs due to the pandemic, Russia’s invasion of Ukraine, and past U.S. tariff policies, it faces a delicate balancing act between economic dependency and protectionism. Merz's trip highlights Germany’s efforts to navigate this complex landscape, while also signaling potential strategic shifts in its approach to China and other key partners.
This issue matters globally as it reflects the challenges faced by major economies in managing their trade relationships with China—a relationship that continues to shape global markets and geopolitical dynamics. The outcome of Merz's discussions could set a precedent for how Europe engages with China in addressing economic
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Originally published on BBC World on 2/25/2026