Merz Aims to Reset Sino-German Economic Relations Amid Growing Trade Imbalances

German Chancellor Friedrich Merz began his visit to China on Wednesday, urging Chinese firms to boost investments in Germany while also calling for a reduction in market distortions. The visit aims to reset relations between the world's second- and third-largest economies.

Merz, accompanied by a large business delegation, met with President Xi Jinping and Premier Li Qiang. He expressed the desire to deepen economic ties with Germany's largest trading partner, despite concerns about market-distorting subsidies and China's trade surpluses.

Although no major deals were signed, both countries aim to strengthen cooperation and safeguard multilateralism. Merz emphasized the opportunities for collaboration, particularly in tech and auto sectors, amid increasing competition from Chinese manufacturers.