Chancellor Merz outlines rules-based China strategy ahead of first official visit

(de-news.net) – German Chancellor Friedrich Merz (CDU) has articulated Germany’s objective of pursuing a fair, predictable, and rules-based framework for engagement with China in advance of his forthcoming official visit. He emphasized that Berlin sought to cultivate a partnership grounded in reliability, equitable treatment, and regulatory transparency, underscoring the expectation that Chinese authorities would demonstrate a comparable commitment to these foundational principles. In addressing persistent trade tensions and structural concerns, Merz highlighted the central importance of adherence to mutually agreed international and bilateral rules. He explained that forthcoming bilateral discussions would not only aim to expand areas of constructive cooperation but would also address structural distortions affecting competitive balance, including export restrictions, industrial overcapacity, and barriers to market access that impede fair and reciprocal economic participation.

Merz further clarified that this strategic posture should not be misconstrued as an effort to pursue economic decoupling, while at the same time reiterating the necessity of implementing a comprehensive and carefully calibrated de-risking strategy. He stressed that China’s entrenched position as a major global economic and political power made disengagement neither realistic nor beneficial, arguing that attempts to sever economic ties would ultimately undermine Germany’s own economic and strategic interests. Instead, he advocated a measured and systematic approach to risk mitigation, emphasizing the importance of preserving channels of engagement and cooperation in sectors where mutual interests remain aligned, while simultaneously reducing vulnerabilities arising from excessive dependence.

Trade imbalance and fair competition to mark Merz’s China visit

According to a German government spokesperson, the Chancellor’s visit to the People’s Republic — his first since assuming office — has been scheduled for February 24 through 26 and will include official engagements in both Beijing and Hangzhou. The spokesperson indicated that the overarching conceptual framework of the trip would center on competition, reflecting the government’s intention to define a balanced approach that reconciles economic cooperation with strategic differentiation. The visit will include high-level meetings with Chinese Premier Li Qiang and President Xi Jinping, alongside the planned signing of multiple bilateral agreements. Merz will also be accompanied by a senior delegation of German business leaders, underscoring the visit’s economic significance. A subsequent stop in Hangzhou—widely recognized as one of China’s foremost technology and innovation centers—will further reinforce the trip’s focus on economic engagement and technological cooperation.

German industry representatives have urged the Chancellor to firmly and proactively defend German and broader European economic interests during the visit, particularly by advocating for fair, transparent, and non-discriminatory conditions in trade and investment. These concerns reflect both the scale and the structural asymmetries that characterize bilateral economic relations. In 2025, China regained its status as Germany’s largest trading partner, with total bilateral trade reaching 251.8 billion euros. The United States ranked second in overall trade volume, while the Netherlands occupied third place among Germany’s principal trading partners. China has also remained Germany’s leading source of imports since 2015, reflecting its central role in German supply chains. In 2025, imports from China rose to 170.6 billion euros, while German exports to China declined by 9.7 percent to 81.3 billion euros, placing China sixth among Germany’s export destinations. This disparity contributed to a significant increase in Germany’s trade deficit with China, which expanded by 22.4 billion euros to reach 89.3 billion euros, highlighting the growing imbalance in bilateral trade flows.

Preparations for the Chancellor’s visit have been underway for some time and have been supported by prior high-level diplomatic engagement. Merz previously discussed the planned trip with Premier Li during the G20 summit in South Africa, using the occasion to advance bilateral coordination and dialogue. In addition, he held consultations with Chinese Foreign Minister Wang Yi on the margins of the Munich Security Conference, further reinforcing the diplomatic groundwork for the visit and underscoring its importance within the broader framework of German-Chinese political and economic relations.

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