German Chancellor Friedrich Merz arrived in Beijing Tuesday, becoming the latest European leader to visit China amid a reassessment of relations prompted by shifts in U.S. Trade policy and geopolitical positioning. The visit follows those of British Prime Minister Keir Starmer and French President Emmanuel Macron, signaling a concerted effort by European nations to navigate a complex relationship with the world’s second-largest economy.
Merz’s trip comes as Germany’s automotive industry faces increasing competition from Chinese manufacturers. At the Munich Security Conference earlier this year, Merz criticized Beijing, stating that it “systematically exploits the dependencies of others,” but has since indicated a desire to discuss “future cooperation” between Europe, Germany and China. The visit underscores the economic stakes driving the renewed engagement, despite ongoing concerns regarding human rights and espionage.
The flurry of European diplomatic activity contrasts with a more cautious approach from the United States. The visits began after Canadian Prime Minister Mark Carney declared the U.S.-led “world order” broken following his own trip to Beijing, a sentiment British Prime Minister Starmer has been careful to avoid echoing. Starmer, according to sources, is attempting to balance engagement with China while maintaining strong ties with Washington D.C. And Brussels.
Elsewhere in Asia, the International Criminal Court began confirmation of charges hearings Tuesday against former Philippine President Rodrigo Duterte. Duterte faces three counts of crimes against humanity related to killings that occurred during his presidency and prior tenure as mayor of Davao. He has rejected the allegations and is currently detained in The Hague.
Regional economic indicators also came into focus. Thailand and the U.S. Commenced the 45th “Cobra Gold” military training exercise, involving over 8,000 personnel from 30 countries. Data on Singapore’s inflation was also released. India is scheduled to report its gross domestic product data for the quarter through December on Friday, with expectations of continued strong growth following an 8.2% expansion in the previous quarter, bolstered by recent cuts to U.S. Import tariffs.
South Korea is due to publish its 2025 birth rate data on Wednesday, amid ongoing concerns about its aging population. An unexpected increase in births was recorded in 2024, the first rise in nearly a decade, and that trend is expected to continue. The Bank of Thailand will also decide on its key interest rate on Wednesday, with market expectations leaning towards a hold at 1.25% to support economic growth.
Keir Starmer’s outreach to France, including a meeting with President Macron in September 2023, has been part of a broader effort to project a vision of a Labour government capable of navigating international relationships. The meeting, which included the exchange of gifts – an Arsenal shirt for Macron and cufflinks for Starmer – signaled a warming of ties between the two leaders. Starmer has also indicated a desire to renegotiate aspects of the Brexit deal with the European Union.
