Germany weighs China risks in new trade era
Deutsche Welle
February 23, 2026
AI-Generated Deep Dive Summary
Chancellor Friedrich Merz's upcoming visit to China marks a pivotal moment in Germany's efforts to redefine its global trade strategy amid a shifting geopolitical landscape. With the United States stepping back from its traditional role, Germany is seeking new partnerships, particularly with China, which has emerged as both an economic powerhouse and a strategic competitor. While there is potential for collaboration, concerns about China's growing influence, including its dominance in key industries like rare earths and its redefinition of international trade norms, loom large.
Germany's trade relationship with China has evolved significantly over the years. Once a lucrative partnership driven by Germany's strong manufacturing sector, it now faces challenges such as a widening trade deficit and competition from Chinese electric vehicle manufacturers. German automakers, once leaders in the Chinese market, are struggling to compete with cheaper Chinese EVs, highlighting the need for greater innovation and competitiveness. Meanwhile, China's strategic patience and long-term vision have allowed it to build significant influence, including near-monopoly control over rare earth minerals critical for clean energy technologies.
The visit comes at a time when Germany is reevaluating its approach to global trade. While Chinese Foreign Minister Wang Yi emphasized multilateralism and free trade during the Munich Security Conference, Merz acknowledges the risks of relying too heavily on China. Experts like Eberhard Sandschneider caution that not everything China offers aligns with German interests, particularly in sectors where China has gained technological leadership. This underscores the delicate balance Germany must strike between economic collaboration and strategic independence.
The stakes are high for both nations. For Germany, the visit is an opportunity to secure reliable partnerships and address vulnerabilities like its growing trade deficit and dependence on Chinese raw materials. For China, it's a chance to strengthen its position as a global economic influencer. However, the potential for conflict remains, particularly if the U.S. continues to pressure its allies to choose sides in a increasingly bipolar world order.
This dynamic highlights the broader challenges of navigating an era where traditional power dynamics are being disrupted. For readers interested in global trade and geopolitics, understanding Germany's strategic pivot and its implications for transatlantic relations is crucial. The outcome of this visit could shape not only the future of German-China trade but also influence how other nations approach their relationships with both China and the United States.
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Originally published on Deutsche Welle on 2/23/2026