Merz Opens China Trip Focused on Trade, Ukraine and Competition

BEIJING: (Web Desk) – German Chancellor Friedrich Merz arrived in China on Wednesday for his first official visit since taking office, stepping into a complex relationship defined by deep trade ties and growing strategic rivalry.

China is Germany’s largest trading partner, but it is also increasingly viewed in Berlin as a systemic competitor. Merz’s trip comes at a sensitive time for Europe’s biggest economy, which is grappling with sluggish growth and rising global uncertainty — particularly following tariff policies introduced by US President Donald Trump.

While both Berlin and Beijing are eager to maintain strong economic cooperation, Merz is expected to defend German and European interests. During talks with Chinese President Xi Jinping, he is likely to raise concerns about trade imbalances and encourage Beijing to use its influence over Russia to help end the war in Ukraine.

China surpassed the United States last year as Germany’s biggest trade partner. However, tensions have grown as European companies accuse Beijing of flooding EU markets with low-cost goods supported by state subsidies and a weak currency. Germany’s trade deficit with China reached a record 89 billion euros last year, highlighting the imbalance.

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Merz has acknowledged China’s expanding global ambitions under Xi, including its push for a reshaped international order and a more assertive foreign policy. Beijing has also restricted exports of critical minerals and high-tech components during diplomatic disputes, actions that have unsettled European industries reliant on Chinese supply chains.

Despite these challenges, Merz is leading a large business delegation that includes executives from Volkswagen, BMW, and Mercedes-Benz, underlining Germany’s dependence on exports.

In Beijing, Merz is scheduled to meet Premier Li Qiang before holding extended discussions and a dinner with Xi. His itinerary also includes a visit to the Forbidden City and a Mercedes facility showcasing autonomous driving technology. The trip will conclude in Hangzhou, where he plans to tour robotics firm Unitree and energy technology company Siemens Energy.

German industry leaders have urged the chancellor to address concerns over market distortions, overcapacity, and export restrictions on key raw materials. Business groups warn that without structural reforms in China to boost domestic demand and ensure fair competition, new trade tensions between Beijing and the European Union could emerge.