Germany and China: A New Chapter in Trade Relations

On his inaugural visit to China as German Chancellor, Friedrich Merz secured China's commitment to import more high-quality German goods. This move comes amid attempts to rebalance economic relations clouded by a significant trade deficit. Merz aims to deepen economic ties despite existing challenges and concerns.


Devdiscourse News Desk | Updated: 25-02-2026 19:22 IST | Created: 25-02-2026 19:22 IST
Germany and China: A New Chapter in Trade Relations
German Chancellor Friedrich Merz

German Chancellor Friedrich Merz secured a promise from China to increase imports of high-quality German goods during a visit to Beijing. Merz, on his first visit to China since taking office, seeks to recalibrate relations overshadowed by a significant trade imbalance with the economic powerhouse.

While meeting President Xi Jinping, Merz emphasized the need to strengthen economic ties with China, Germany's biggest trading partner in the last year. Xi highlighted the importance of bolstering strategic communication and trust in a world increasingly marked by global interdependence.

Merz's discussions with Chinese officials touched upon concerns including an undervalued yuan and market-distorting subsidies. Both sides signed several narrowly focused agreements and expressed intentions for deeper cooperation, particularly in emerging fields such as artificial intelligence and biomedicine.

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