German Chancellor Friedrich Merz on Wednesday called for closer cooperation with China, while urging fairer trade rules and asking Beijing to use its influence to help end the war in Ukraine.
Merz, on his first trip to China since taking office in May last year, met Premier Li Qiang and later President Xi Jinping in Beijing during a two-day visit aimed at strengthening ties with Germany’s largest trading partner, even as Berlin increasingly views Beijing as a systemic rival.
“We have a few issues that we need to talk about today in the course of my visit,” Merz told Li, according to the Associated Press. “But I think there is also great potential for further growth of both our economies.”
He added that cooperation should continue “wherever possible.”
Xi told Merz he was willing to take bilateral relations to “new levels” and said he had “always attached great importance to Sino-German relations,” according to the Agence France-Presse.
Merz described the visit as a “great opportunity” to deepen economic ties and said he hoped joint intergovernmental consultations—paused during the pandemic and political transitions—would resume “very soon.”
Pressing China on Ukraine
Ahead of arriving in Beijing, Merz said he would seek China’s help in bringing an end to Russian invasion of Ukraine.
He stressed that despite political differences, “the big global political problems can no longer be tackled today without involving Beijing,” noting that China’s voice is influential, including in Russia.
Several European governments have expressed frustration that China has not done more to pressure Moscow. Beijing has maintained close diplomatic and economic ties with Russia but says its position on the conflict is neutral.
Chinese foreign ministry spokesperson Mao Ning said earlier this week that China hopes all parties “seize the opportunity to reach a comprehensive, lasting and binding peace agreement.”
Trade tensions and tariff backdrop
Merz’s visit also comes amid global economic uncertainty triggered by tariffs introduced by US President Donald Trump and growing pressure on allies to shoulder more responsibility for their own security.
Chinese officials have sought support from other countries against what they describe as rising unilateralism and protectionism. In an apparent reference to the United States, Li said that “unilateralism and protectionism have gained ground and even become prevalent in some countries and regions,” adding that China and Germany should work together to safeguard multilateralism and free trade.
Merz emphasised that Germany’s China policy must be aligned with the broader approach of the European Union.
“Our message from a European point of view is the same: We want a balanced, reliable, regulated and fair partnership with China,” he said.
Trade imbalance concerns
Economic imbalances remain a major issue in the relationship. Germany’s imports from China rose 8.8 per cent to €170.6 billion last year, while exports to China fell 9.7 per cent to €81.3 billion.
This pushed Germany’s trade deficit with China to a record €89 billion.
European leaders, including Merz, are seeking better market access for their companies and action to address what they call systemic overcapacity in sectors such as electric vehicles and solar panels.
“We also want to discuss how we can find remedies where systemic overcapacities have arisen, where there are export restrictions and where there are access restrictions that distort competition,” Merz said.
German industry groups have also urged the chancellor to raise concerns about export controls on critical raw materials and other structural barriers that could lead to new trade disputes with the EU.
Strategic rivalry despite economic ties
Although China overtook the United States as Germany’s biggest trading partner last year, Berlin still considers Beijing a strategic and systemic rival.
Merz acknowledged before departing that China “claims the right to define a new multilateral order according to its own rules,” warning against unrealistic expectations even as he emphasised the importance of maintaining economic cooperation.
The chancellor travelled with a large business delegation, including executives from major German automakers and industrial firms, highlighting the significant economic stakes involved in the visit.
