Germany-China Trade: Merz Calls for ‘Fair’ Cooperation Amid Shifting Balance
Beijing – German Chancellor Friedrich Merz, during a meeting with Chinese Premier Li Qiang in Beijing on Wednesday, emphasized Germany’s desire for deepened economic ties with China, but stressed the importance of a “fair” partnership. The comments came as Merz began a two-day inaugural visit to the country, Germany’s largest trading partner.
“We want a partnership with China that is balanced, reliable, regulated and fair,” Merz stated, according to reports from the meeting. He underscored the need for open communication between the two nations as they navigate a complex global economic landscape.
Premier Li, in response, urged Germany to collaborate in safeguarding free trade, referencing the disruptive impact of recent US trade policies. “China and Germany, as two of the world’s largest economies and major countries with important influence, should strengthen our confidence in cooperation, jointly safeguard multilateralism and free trade, and strive to build a more just and fair global governance system,” Li said, according to China’s state broadcaster CCTV.
Merz’s visit arrives at a moment when Germany is reassessing its international partnerships. China reclaimed its position as Germany’s top trading partner in 2025, surpassing the United States, with bilateral trade exceeding €250 billion ($294 billion) last year. This shift follows a period of fluctuating trade dynamics, where the US briefly held the top spot.
Yet, the economic relationship is increasingly marked by a significant trade imbalance. Germany’s trade deficit with China reached a record high in 2025, estimated at around €90 billion, a €30 billion increase from the previous year, according to the German Economic Institute. This growing deficit has raised concerns within German industry.
The competitive landscape is also evolving, with Chinese companies gaining prominence in sectors traditionally dominated by German manufacturers. The automotive industry, a cornerstone of the German economy, is undergoing a transition to electric vehicles. While German automakers retain brand recognition, Chinese manufacturers are increasingly competitive, offering lower-priced electric vehicles both domestically and in European markets.
During a meeting with President Xi Jinping later on Wednesday, Xi Jinping and Merz also discussed the war in Ukraine. Merz reportedly urged China to leverage its influence with Moscow to contribute to a resolution of the conflict, stating that signals from Beijing are “taken very seriously in Moscow.”
The German Chancellor was received with military honors and hosted for a luncheon following his initial meeting with Premier Li Qiang.