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German Chancellor Merz visits Beijing for talks on trade relations

Feb 24, 2026, 7:29am EST
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German Chancellor Friedrich Merz talks to journalists on a plane.
Andreas Rinke/File Photo/Reuters

German Chancellor Friedrich Merz arrived in China, seeking to rebalance the two countries’ trade relationship.

Berlin was for years the driving force for closer EU relations with Beijing — as China took off economically, it was a huge market for Germany’s industrial exports. But that drive “appears to be a historic policy miscalculation,” Politico reported, comparable to Germany’s reliance on Russian energy, as China’s soaring industrial output floods markets and its dominance of raw-materials supply chains gives Beijing huge power over Germany’s factories.

Merz is under pressure from German industry leaders to take a harder line, but he is in a tough spot: US unpredictability means relying on Washington is unwise, leaving him little leverage over Chinese leader Xi Jinping.

A chart showing Germany’s trade with China.
— Tom Chivers
AD