Beijing – German Chancellor Friedrich Merz concluded a visit to China on Wednesday, striking a cordial tone while also addressing critical issues of trade imbalance and the ongoing conflict in Ukraine. Merz, on his first official trip to the country, emphasized the importance of strengthening the “comprehensive strategic partnership” between Germany and China, but also pressed for a more equitable economic relationship and urged Beijing to leverage its influence with Moscow.
The visit, following similar engagements by French President Emmanuel Macron and British Prime Minister Keir Starmer, underscores a broader European effort to maintain dialogue with China amidst shifting geopolitical dynamics and a strained relationship with the United States. Germany, as China’s largest trading partner, faces a growing trade deficit – reaching €90 billion in 2025 – and increasing concerns over strategic dependencies, prompting a call for a “reset” in economic ties.
During meetings with President Xi Jinping and Premier Li Qiang, Merz highlighted the necessitate to reduce the current trade imbalance, which he attributed to overcapacity in China. He stressed the importance of fair competition, transparency, and adherence to established rules, signaling a desire to address what German businesses perceive as unfair advantages enjoyed by Chinese companies. “Competition between companies must be fair,” Merz stated, according to reports. “We need transparency, we need reliability, and we also need compliance with jointly established rules.”
Airbus Order and Economic Concerns
Despite the focus on trade concerns, the visit yielded some positive economic news, with China announcing a substantial order for Airbus aircraft. Merz, accompanied by a delegation of approximately 30 business executives, indicated that other deals were also in the pipeline. However, the underlying anxieties about Germany’s economic vulnerability remain. Johannes Volkmann, a member of the German Bundestag’s foreign affairs committee, noted the importance of learning from past mistakes, specifically the country’s decade-long reliance on Russian gas, which left it exposed following the invasion of Ukraine.
Volkmann also warned about China’s potential use of export controls, particularly regarding rare earth minerals, as a form of economic leverage. He advocated for a strategy of “risk reduction” to mitigate critical dependencies. The growing economic reliance of Russia on China was also acknowledged, with Volkmann observing that this gives Beijing a “not altogether uncomfortable” position, potentially allowing for greater maneuverability in the Indo-Pacific region while NATO’s attention is focused on Ukraine.
Political Differences and Human Rights
Beyond economic matters, Merz also raised the issue of fundamental political differences between Germany and China. He pointed to the case of Jimmy Lai, a pro-democracy activist and media mogul in Hong Kong, as an example of the lack of freedom of expression in China. Lai, the founder of the now-defunct Apple Daily newspaper, was recently sentenced to 20 years in prison, and requests from British diplomats to meet with him have been denied by Beijing.
Sebastien Lai, the activist’s son, told Euractiv that his father is suffering in prison and being denied adequate medical care. He appealed for international solidarity, stating, “Jimmy Lai has fought for freedom. Now he needs the solidarity of the free world.” Merz reportedly intends to encourage other European leaders to raise Lai’s case with Chinese authorities, following a similar call from former U.S. President Donald Trump.
Ukraine Conflict and China’s Role
A key element of Merz’s message to Xi Jinping was a request for China to use its influence over Russia to support end the war in Ukraine. He urged Beijing to cease the supply of dual-use goods that could potentially be used to harm Ukrainians. This appeal reflects a growing international effort to persuade China to play a more active role in resolving the conflict, given its close economic ties with Russia.
Looking ahead, the success of Merz’s visit will depend on whether concrete steps are taken to address the trade imbalance and whether China demonstrates a willingness to exert pressure on Russia. The ongoing dialogue between Germany and China will be crucial in navigating the complex geopolitical landscape and safeguarding Germany’s economic interests. Continued engagement and a commitment to open communication will be essential as both nations seek to redefine their strategic partnership.
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