Merz in China: German chancellor, Xi seek more cooperation

Chinese state news agency Xinhua carried a brief response from Xi to Merz's call for China to bring its influence to bear on Moscow in a bid to bring an end to Russia's invasion of Ukraine.  According to Xinhua, Xi told the German chancellor that diplomacy was "key to the issue" of halting the war with open Russian participation, which entered its fifth year as of Tuesday.  "Xi noted the necessity of ensuring the equal participation of all parties to lay a solid foundation for peace, [and] addressing the legitimate concerns of all sides to strengthen the will for peace," Xinhua wrote.  Both Russia and Ukraine have at times complained that their voices and grievances are not adequately heard or taken into account in the various efforts at diplomacy in recent years. Representatives from the US, Russia and Ukraine are scheduled for more meetings on Thursday in Geneva. 

With Wednesday's business in Beijing winding down, Reuters news agency cites German government sources as saying that Merz raised some trickier economic topics directly in his talks with Premier Li Qiang.  "The chancellor brought up trade restrictions, the rapidly rising trade deficit, currency questions and rare earths during his discussion with Li," Reuters cited its sources as saying. "It was made clear that China must also deliver if it wants to reinforce its image as a partner that sticks to the rules."  This phrasing could be interpreted both as a nod to the Trump administration in the US and to China's recent allusions to itself as a reliable partner, which have largely been seen as a bid to contrast the often-changing trade stance coming from the White House in recent weeks and months. Raising these questions with Li rather than President Xi Jinping could be because Li's role is nominally more closely concerned with domestic and economic policy and day-to-day government operations than his superior Xi's more overarching position as head of state. Merz said in Beijing that although "our political systems are fundamentally different" and "both sides are aware that we can also reach differing positions on important questions," Germany and China could nevertheless cooperate to mutual benefit in many areas.  "That demands patience and above all it demands dialogue," Merz said. 

Mercedes-Benz has lauded Merz's trip to "one of the most important markets" for the company and the car industry as a whole, seemingly encouraging more political engagement between Berlin and Beijing.  German carmakers' difficulties in 2025 were attributable in very large part to deteriorating performance in their two main export markets, the United States and China. "From Mercedes-Benz's perspective as well, personal exchange remains highly important in promoting mutual understanding and continuing to work on maintaining positive economic relations," a company spokesperson said.  The spokesperson said the German government was demonstrating "that bilateral exchange and the cultivation of political and economic relations between the countries are a high priority."   Merz said on Wednesday that a new date for the next set of bilateral government-level consultations would be announced soon. He also said he planned regular visits to China as chancellor.   "I place high value on maintaining and also deepening these [ties], wherever it's possible," he said during his meeting with Premier Li Qiang. 

Looking for a longer exploration of modern China, how state planning is accelerating modernization, and how it's using key materials like rare earths to create systemic dependencies? Interested in its bid to increase its already sizeable footprint in Europe, often using Viktor Orban's Hungary as a base, and an analysis of how dependent on China Germany has really become?  If so, take a look at this featured long video "Economic Powerhouse China — A Risky Partner?" Experts from Europe, the US and China also provide insights and answers on how China stacks up against the United States, the other global superpower it has emerged to challenge in recent decades. 

Merz also told reporters in Beijing that he had raised the issue of Taiwan during his talks.  He said that Germany's China politics remained unchanged. In other words, this means that Germany — like almost every major country on the planet — continues to adhere to the "one China" principle Beijing insists on that formally recognizes Taiwan as an inalienable part of Chinese territory and does not recognize Taiwan as a fully-fledged state. Holding this position is a precondition for having full diplomatic relations with China; even Taiwan's most important ally the US keeps to it.  However, Merz also issued a warning against any efforts to take Taiwan by military force, a possibility Beijing has never ruled out if also a path it has never pursued against the democratic island nation.  "Any attempt at a reunification or unification between China and Taiwan can only succeed via peaceful means and not with military action," he said. 

Merz said that he'd addressed foreign policy questions with Xi as well.  He said that China's "words and deeds" were taken very seriously in Moscow.  "Therefore, I have asked my interlocutors today to exert their influence to bring an end to the Russian war of aggression against Ukraine," Merz said, a day after the full-blown conflict in eastern Europe entered its fifth year.  Merz also said that China should not sell so-called dual use goods to Russia that could be put to military use against people in Ukraine. Dual use goods is a term for any equipment or materials that can have both civilian and military uses. 

China will buy up to 120 additional aircraft from European aviation giant Airbus, Merz said in Beijing following his meeting with Xi Jinping.  "The Chinese leadership will be ordering a large number of additional aircraft from Airbus. The total order will include up to 120 additional aircraft," Merz said, adding that it "demonstrates how worthwhile such trips can be."  Merz did not identify what types of aircraft China planned to purchase or when, questions that can often be flexible in an industry with such considerable production and delivery lead times.  Other contracts were also in the pipeline, Merz said. 

Merz brought up the issue of China's rapid balance of trade surplus growth in comments to reporters on Wednesday.

He said he welcomed the chance to expand economic cooperation with China, but also said the German trade deficit with China had quadrupled in the past five years, dubbing the development "not healthy." 

"We are, therefore, addressing it and want to open up ways to reduce the trade deficit," he told reporters. 

China's exports to Germany in 2025 were worth more than double Germany's in the other direction. The trade surplus also increased by roughly one-third compared to 2024. Both rising Chinese export revenues and declining German numbers contribute to this development. 

DW's Chief Political Editor Michaela Kuefner is among the reporters accompanying Merz on his trip to Beijing. Merz told the press corps prior to departure that "the great geopolitical questions can no longer be solved without roping in China."   Among other things, Kuefner's watching for signs of Merz trying to show teeth amid falling German exports to China, particularly for the struggling German car industry. It's facing the double whammy of increased tariffs and trade tensions as the EU tries to raise barriers to cheap Chinese electric car imports, coupled with Chinese carmakers emerging as viable producers of high-end luxury models to rival BMW, Mercedes and Porsche in a way that seemed unthinkable just a few years ago.  In roundtable trade talks in Beijing, the German chancellor tried to raise some of the issues less likely to feature in joint comments with Xi Jinping or Premier Li Qiang.  "German and European businesses are reporting incomplete opening of the markets in certain sectors," Merz said at the session, referring for instance to faltering efforts to open up access to the Chinese market to European and German port and container shipping companies.  The chancellor also said that in Germany's view it was "important to reduce subsidies that distort the market in order to consolidate markets where there are production surpluses" in China, seemingly in reference to industries like steel production, or solar panels, or indeed for the supply chain when producing electric cars.   He also raised another classic bilateral gripe, ironically one that other international partners like Trump's US often complain to Germany about: China's large and rising balance of trade surplus with Germany.  Chinese 2025 exports to Germany were worth more than double Germany's exports in the other direction, at €170.6 billion (roughly $201 billion) versus €81.3 billion, according to new German statistics published last week.   That was a stark increase on 2024's figures, when the Chinese trade surplus stood at €66.9 billion, not €89.3 billion. 

After several years, primarily during the peak of the coronavirus pandemic, when China's government made and requested very few foreign visits, Beijing has opened its doors to a series of European, NATO or western-allied leaders in recent months.  Delegations from France, South Korea, Ireland, Finland, Canada and the UK have all visited Beijing over the winter, as did Germany's foreign minister, Merz's CDU ally Johann Wadephul, in early December.  The flurry of visits precede US President Donald Trump's next scheduled trip to China, currently scheduled for early April.  Trump's unpredictable tariff-based policies — brought back into sharp focus in recent days by the Supreme Court ruling saying he overstepped his authority making them, prompting Trump to try to impose new global levies by a different mechanism — have also been a subject of interest for Beijing.  However, China was able to fairly rapidly secure what most observers considered a US climbdown during a brief tariff exchange late last year by putting restrictions of its own on core exports for US industries, not least rare earth minerals.  Canadian Prime Minister Mark Carney's pointed World Economic Forum speech in Davos came just days after his visit to China. Trump subsequently threatened exorbitant tariffs on Canada unless Carney scrapped a new bilateral accord brokered on his Beijing visit. The Canadian prime minister later said he considered it plausible this was intended as leverage for upcoming US-Mexico-Canada-Agreement (USMCA) negotiations. 

China's President Xi Jinping told Merz that he hoped to take relations between the countries to "new levels" during their meeting in Beijing on Wedensday.  "I am willing to work together with the Chancellor to jointly make efforts to continuously advance the comprehensive strategic partnership between China and Germany to new levels," Xi told Merz.  He said that he had "always atteached great importance to Sino-German relations," and that the two countries should look to enhance their strategic cooperation. 

Chancellor Friedrich Merz told China's President Xi Jinping that he wanted to deepen ties between the two countries, as he becomes the latest in a string of western leaders to visit Beijing in recent months.  "We are two of the world's three largest industrial nations. This is a great responsibility. But it is also a great opportunity," Merz said in the Chinese capital.  He said the two countries had had good bilateral ties for decades and that "I would like to follow up on that." 

German Chancellor ‌Friedrich Merz said in his meeting with ​Chinese Premier Li ​Qiang that ​Germany wants ‌ to deepen economic ‌exchanges with Beijing. However, Merz added that Germany had specific concerns on cooperation and ​wanted to ensure ⁠that ​cooperation ​is fair. The chancellor stressed that the two nations must speak openly with each other.  The comments from Merz came as he began his inaugural visit to China, Germany's largest trade partner. Li urged Germany to help safeguard free trade, as he referred to US President Donald Trump's ​trade war, that has sent ripples down the global trading system. "China and Germany, as two of the world's largest ​economies and major countries ‌with important influence, should strengthen our confidence in cooperation, jointly safeguard multilateralism and free trade, and strive to build a more just and fair global governance system," the premier said. Merz's visit comes as Germany no longer sees the United States as a reliable partner and is scouring for global partners. China returned to being Germany's most important trading partner in 2025, replacing the US's brief stint, with a trade volume of more than €250 billion ($294 billion) in 2025. Germany's trade relationship with China has seen a significant shift.

Germany's trade deficit reached a record high in 2025, estimated at around €90 billion according to the German Economic Institute. This marks an increase of €30 billion over 2024 alone. Chinese industries are also increasingly leading in sectors once dominated by German firms.  The German automobile industry was successfully serving the market in China, but both countries are now witnessing a transition to electric cars. While German electric cars may bring with them brand recognition, Chinese manufacturers have managed to make their cars cheaper, even exporting them to Europe.

While the United States had decades to absorb the first China shock at the turn of the century, those now confronting the second — above all Germany — have had far less notice. Chancellor Friedrich Merz is scrambling to defend German industry from the economic upheaval in Beijing — but what options does he have? Read DW's full report on how Germany is dealing with China's rising economic dominance.​​​​​​

German Chancellor Friedrich Merz landed in Beijing on Wednesday for his first visit to China. Merz is being accompanied by a large delegation of business leaders. The German chancellor was received by Premier Li Qiang with military honours. Merz is scheduled to hold talks and have dinner with Chinese President Xi Jinping in the evening.