Germany’s chancellor called on China to correct the countries’ growing trade imbalance, as he walks a tightrope of strengthening diplomatic ties with Beijing while trying to manage its economic heft.
Friedrich Merz arrived in Beijing on Wednesday with “an outstretched hand and a list of complaints,” The New York Times wrote: Berlin is concerned about what it sees as an undervalued yuan, unfair subsidies, and overcapacity from Chinese exporters.
But reducing dependence on China is difficult for Germany, whose industries have invested massively in the Chinese market, analysts said. From Beijing’s perspective, “it’s Europe that should be making the concessions and seeking closer economic support from China because it’s in a weak position,” one expert said.