German Chancellor Merz Advocates for Stronger China Ties During Beijing Visit
German Chancellor Friedrich Merz emphasized the need for closer cooperation with China during his two-day visit to Beijing, while simultaneously pressing for fairer trade regulations and urging Chinese leadership to leverage its influence to help resolve the ongoing conflict in Ukraine. This marked Merz's inaugural trip to China since assuming office in May of the previous year, underscoring Berlin's complex relationship with its largest trading partner, which it also views as a systemic rival.
High-Level Meetings with Chinese Premier and President
During his visit, Chancellor Merz held significant discussions with Premier Li Qiang and later with President Xi Jinping. According to reports from the Associated Press, Merz acknowledged to Premier Li that there were several critical issues to address, but he highlighted the substantial potential for further economic growth between both nations. "I think there is also great potential for further growth of both our economies," Merz stated, adding that collaboration should persist "wherever possible."
President Xi, as reported by Agence France-Presse, expressed his willingness to elevate bilateral relations to "new levels" and reiterated that he "always attached great importance to Sino-German relations." Merz described the diplomatic engagement as a "great opportunity" to strengthen economic ties and expressed hope that the joint intergovernmental consultations, which had been paused due to political shifts and the pandemic, would resume "very soon."
Urging Chinese Assistance on Ukraine Conflict
Prior to his arrival in Beijing, Chancellor Merz indicated his intention to seek China's assistance in bringing an end to Russia's protracted war in Ukraine, now in its fourth year. He stressed that despite existing differences, "the big global political problems can no longer be tackled today without involving Beijing," noting that "Beijing's voice is heard, including in Moscow."
Many European governments have voiced frustration over China's limited efforts to pressure Russia. Beijing has maintained close diplomatic and trade relations with Moscow while asserting its impartial stance on the conflict. Chinese foreign ministry spokesperson Mao Ning stated earlier this week, "We hope all parties will seize the opportunity to reach a comprehensive, lasting and binding peace agreement."
Addressing Trade Tensions and Economic Imbalances
Merz's visit occurs against a backdrop of global economic uncertainty, fueled by tariffs imposed by former US President Donald Trump and calls for allies to assume greater responsibility for their security. China has actively sought support from other nations to counter what it perceives as rising unilateralism and protectionism.
In an apparent reference to the United States, Premier Li remarked that "unilateralism and protectionism have gained ground and even become prevalent in some countries and regions," advocating that China and Germany should "jointly safeguard multilateralism and free trade."
Chancellor Merz emphasized that Germany's China policy must align with a broader European approach. "Our message from a European point of view is the same: We want a balanced, reliable, regulated and fair partnership with China," he said, according to AP. "This is our offer. At the same time, it is what we also hope for and expect from the Chinese side."
Concerns Over Trade Deficit and Market Access
Economic imbalances remain a pivotal issue in Sino-German relations. Data from AP reveals that Germany's imports from China increased by 8.8 percent to €170.6 billion ($201 billion) last year, while exports to China declined by 9.7 percent to €81.3 billion ($96 billion). Consequently, Germany's trade deficit with China reached a record €89 billion ($105 billion) in the same period.
European leaders, including Merz, are advocating for improved market access for their companies and reductions in what they describe as systemic overcapacity in sectors such as electric vehicles and solar panels. "We also want to discuss how we can find a remedy, for example, where systemic overcapacities have arisen, where there are export restrictions and where there are access restrictions … that distort and prevent competition," Merz asserted.
German industry representatives have urged Merz to address critical issues including "overcapacity, distortions of competition, and export controls on critical raw materials," as reported by AFP. They warned of potential new trade conflicts with the European Union if structural reforms are not implemented.
Strategic Rivalry Amid Economic Interdependence
While China surpassed the United States to become Germany's largest trade partner last year, Berlin continues to regard Beijing as a strategic and systemic rival. Merz acknowledged before his departure that China "claims the right to define a new multilateral order according to its own rules," cautioning against illusions while underscoring the necessity of global economic connections.
The chancellor was accompanied by a substantial business delegation, featuring executives from major German automakers and industrial firms, highlighting the significant economic stakes of the visit. This delegation underscores the delicate balance between fostering economic cooperation and managing strategic rivalries in an increasingly interconnected global landscape.
