Merz in China: German chancellor, Xi seek more cooperation
Deutsche Welle
February 25, 2026
AI-Generated Deep Dive Summary
German Chancellor Friedrich Merz visited China to strengthen economic ties with President Xi Jinping amid growing global trade tensions. Both leaders emphasized the importance of enhanced strategic cooperation during their discussions, highlighting mutual interests in addressing market access issues and trade imbalances. Merz raised concerns about the uneven playing field for European businesses in China, particularly in sectors like shipping and container logistics, while also calling for reduced subsidies that distort markets, such as those seen in industries like steel and solar panels.
The trade imbalance between Germany and China has widened significantly, with Chinese exports to Germany exceeding €170 billion in 2025 compared to Germany's exports of just over €80 billion. This surplus has doubled since 2024, reflecting broader challenges for German industries, especially the automotive sector, which faces increased tariffs and competition from Chinese luxury car manufacturers. Merz's visit comes at a time when China is actively courting Western leaders to strengthen ties, partly in response to US President Trump's unpredictable trade policies and tariff disputes.
China's recent outreach to European and NATO allies, including visits by leaders from France, the UK, and Canada, underscores its strategic shift to deepen economic partnerships. This move aims to counterbalance US-China tensions and leverage China's growing influence in global trade. By addressing business concerns and seeking fairer market conditions, Merz and Xi are aiming to reset their nations' economic relationship, which could have broader implications for international trade dynamics.
The discussions between Merz and Xi not only reflect the complexities of Sino-German relations but also highlight China's strategic importance as a global economic powerhouse. As US-China trade tensions escalate, both Germany and China see an opportunity to enhance cooperation, potentially influencing the future landscape of international trade and diplomacy.
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Originally published on Deutsche Welle on 2/25/2026