The German Chancellor, Friedrich Merz, defended this Wednesday, 25th, in Beijing a more “fair” cooperation with China, at the start of a visit to Germany’s main trading partner, increasingly seen in his country as a strong competitor.
“We have very concrete concerns regarding our cooperation, which we want to improve and make fairer,” said Merz at the start of talks with Chinese Prime Minister Li Qiang at the Great Hall of the People in central Beijing.
The head of the Chinese Government called on Germany to work towards “jointly defending multilateralism and free trade”.
Merz, who arrived mid-morning with a large business delegation, is expected to meet and have dinner this evening with Chinese President Xi Jinping, in what is his first visit to China since taking office in 2025.
The chancellor stated that he sees “great growth potential” for two of the largest economies in the world, highlighting, however, the need for an “open” dialogue.
Before the match, Merz indicated that he intended to address several issues of divergence, such as competition rules, access to markets and security of supply of rare earths, essential raw materials for many German companies and whose production is dominated by China.
The German official also wants to discuss the war in Ukraine, counting on Beijing’s good relations with Moscow. “Beijing’s voice is heard, even in Moscow,” he declared.
Merz is the latest foreign leader to travel to Beijing, at a time when US President Donald Trump has shaken up the international order with new tariffs and the overhaul of old alliances.
“Today, China has become unavoidable for everyone,” said Merz on Tuesday.
In the last three months, leaders from the United Kingdom, Finland, Canada, South Korea, Ireland or France have visited Beijing.
At the same time, German industry faces increasing pressure from Chinese competition. Europe’s largest economy, heavily dependent on exports and for years supported by the vast Chinese market, has seen its car manufacturers’ sales decline significantly in China and is increasingly facing Chinese technological competition on a global level.
Like other European Union partners, Germany expresses concern about the expansion of Chinese electric vehicles and the flow of Chinese production surpluses to Europe.
Berlin also warns of Beijing’s use of semiconductors and rare earths as instruments in the global trade dispute, as happened in 2025, severely affecting supply chains, particularly in the automotive industry.
“We want and must adopt a risk reduction policy, not just in relation to China”, stated Merz, stressing, however, that it would be a mistake to associate this strategy with economic decoupling.
Germany and other countries criticize the restrictions on access to the Chinese market, the subsidies considered undue and the alleged undervaluation of the Chinese currency.
Xi Jinping has presented China as a reliable partner and defender of multilateralism and free trade, promoting a “win-win” relationship based on “mutual respect”.
In 2025, China was engaged in an intense trade and diplomatic dispute with the United States under the presidency of Trump, whose visit to Beijing is scheduled for the end of March.
Merz traveled accompanied by the chief executives of Volkswagen, BMW and Mercedes. On Thursday, he will attend the presentation of autonomous vehicles by Mercedes and then travel to Hangzhou, a technology hub, to visit the robotics group Unitree and the company Siemens Energy.
Last year, Germany’s trade deficit with China increased by more than 22 billion euros, reaching around 89 billion euros.
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