German Chancellor Friedrich Merz Presses President Xi Jinping to Reduce Market Distortions, Urges Chinese Investment

German Chancellor Friedrich Merz Presses President Xi Jinping to Reduce Market Distortions, Urges Chinese Investment

25 February, 202613 sources compared
China

Key Points from 13 News Sources

  1. 1

    Urged Beijing to reduce market distortions and enforce fair competition rules

  2. 2

    Called on Chinese firms to increase investment in Germany

  3. 3

    Secured Chinese pledge to import more high-quality German goods to narrow trade deficit

Full Analysis Summary

Merz's China visit

Chancellor Friedrich Merz arrived in Beijing for his first official visit as chancellor.

He held two days of talks during the visit.

He led a large business delegation that included major German firms.

Yicai described the entourage as roughly 30 executives.

Al Jazeera and DW reported that he held talks with President Xi Jinping and Premier Li Qiang and that the program included a visit to Hangzhou.

The visit combined commercial outreach with political messaging.

Merz pressed China on state subsidies, industrial overcapacity and an undervalued yuan while urging deeper Chinese investment in Germany.

Chinese leaders framed the trip as an opportunity for stronger strategic communication and mutual trust.

Coverage Differences

Tone

Some sources frame the trip chiefly as economic outreach and mutual opportunity (Yicai, The Straits Times), while others emphasize Merz’s warnings about unfair competition and strategic rivalry (DW, El Mundo). The contrast reflects each outlet’s focus: Yicai stresses cooperation and invitations to new sectors, whereas DW and El Mundo foreground German concerns about market distortions and strategic risk.

Germany-China trade imbalance

A key focus of Merz's messaging was Germany's widening trade imbalance with China.

Multiple outlets recorded a roughly €90 billion deficit last year.

Al Jazeera gives specific import and export figures — imports rose to €170.6bn while exports fell to €81.3bn.

DW and El Mundo similarly report trade figures placing China as Germany's largest trading partner with overall trade above €250bn.

These statistics formed the backdrop for Merz's calls for fairer market access and for German firms' demands that he press Beijing on industrial overcapacity and subsidy-driven competition.

Al Jazeera wrote: "Merz highlighted a growing German trade deficit with China — a €90 billion gap last year".

DW wrote: "China, now Germany’s top trading partner, accounted for over €250 billion in trade last year and left Germany with a record deficit of about €90 billion".

El Mundo wrote: "Germany’s trade with China reached €251 billion in 2025".

Coverage Differences

Narrative Framing

Some sources present the numbers as context for pragmatic engagement and business opportunities (Yicai emphasizes long‑standing ties and mutual investment stock), while others emphasise threat and competition (El Mundo and DW focus on the deficit and industry complaints). This reflects differing editorial priorities: trade statistics are shared, but their implications are framed either as grounds for deeper cooperation or for caution and corrective policy.

Merz on China concerns

Merz publicly pressed for concrete remedies to market distortions, naming an undervalued yuan, state subsidies and Chinese overcapacity.

He urged Chinese firms to raise investment in Germany.

whbl and Inbox.lv report his direct urging to Chinese companies to increase investment and to curb distortions.

DW and The Straits Times cite German business demands that he press Beijing on subsidy-driven competition, export controls on critical raw materials and unequal market access.

These demands accompanied Merz's broader five-point approach to China engagement, which includes reducing dependency and ensuring fair competition.

whbl paraphrased that Merz said he wanted to deepen ties but raised specific concerns about an undervalued yuan, state subsidies and overcapacity.

DW wrote that German firms want him to press Beijing on industrial overcapacity, subsidy-driven competition, export controls on critical raw materials and unequal market access.

Inbox.lv said he urged Chinese firms to boost investment in Germany while pressing Beijing to reduce market distortions.

Coverage Differences

Unique Coverage

Local outlets like whbl and Inbox.lv emphasize Merz’s direct appeals to Chinese companies to invest in Germany, while mainstream outlets like DW list specific technical grievances from German firms. Yicai omits these confrontational details, instead highlighting invitations to collaborate in emerging sectors — showing a relative downplaying of explicit criticism in Chinese‑facing coverage versus European outlets’ focus on remedies.

China-Merz visit summary

China’s response combined reassurance on cooperation with diplomatic positioning on global issues.

Chinese officials welcomed stronger strategic communication and mutual trust and framed the visit as a chance to expand cooperation under Beijing’s new Five‑Year Plan.

Beijing told Merz it supports a political solution to the war in Ukraine and urged inclusive negotiations.

Several outlets recorded concrete outcomes such as memorandums on climate and food security and a commercial understanding to buy up to 120 Airbus aircraft.

Yicai emphasized invitations to collaborate in areas like clean energy and biotechnology under the 15th Five‑Year Plan.

Al Jazeera and Inbox.lv report China backing a political solution to Ukraine and the Airbus purchase.

whbl and The Straits Times cite Xi and Li’s calls for strategic communication and defending multilateralism.

'Beijing invited German companies to expand cooperation into emerging areas such as clean energy, embodied intelligence, biotechnology and industrial digitalization' (Yicai); 'China told Merz it supports a political solution to the war in Ukraine' (Al Jazeera); and 'China agreed to buy 'up to 120' Airbus aircraft' (Al Jazeera).

Coverage Differences

Missed Information

Some sources (Yicai, whbl) emphasize economic cooperation and invitations under China’s Five‑Year Plan, while others (Al Jazeera, The New Arab) give more attention to geopolitical messaging — China’s stance on Ukraine and its diplomatic offers — and to specific commercial deals like Airbus purchases. This shows variation in what each outlet highlights: domestic Chinese economic framing versus Western coverage stressing geopolitical implications and concrete purchases.

Germany-China visit summary

Observers interpret the trip as emblematic of Europe’s balancing act: Germany seeks market access, supply‑chain resilience and investment while simultaneously guarding against unfair competition and strategic dependency.

DW highlights Merz’s five guiding principles — reduce dependency and ensure fair competition among them — and outlets such as El Mundo and The New Arab characterize the visit as part of a wider European recalibration that treats China as both partner and systemic rival.

At the same time, Chinese coverage foregrounds mutual benefit and invitations to new fields.

The visit concluded with memorandums and commercial understandings but also with explicit German warnings about China’s global ambitions and close ties with Russia, leaving some tensions unresolved.

"Merz set out five guiding principles — reduce dependency, boost self‑reliance, ensure fair competition..." (Al-Jazeera Net/DW); "his more cautious tone reflects a wider European recalibration of ties with Beijing" (El Mundo); "Beijing invited German companies to expand cooperation..." (Yicai).

Coverage Differences

Contradiction

European outlets (DW, El Mundo) repeatedly emphasize caution and systemic rivalry, whereas Chinese‑facing outlets (Yicai) present the visit as an opportunity for cooperation under mutually beneficial terms. This is not a factual contradiction about events — both report the meetings and agreements — but a contradiction in framing: opportunity versus caution.

All 13 Sources Compared

Al Jazeera

Xi, Merz seek to build on economic ties amid fallout from US tariffs

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Al-Jazeera Net

Fifth Western visit to Beijing: Arrival of the German chancellor as part of a wave of diplomatic moves.

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bgnes

Germany's Merz meets Xi in Beijing, seeking closer ties

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DW

Merz in China: German chancellor lands in Beijing

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El Mundo

Friedrich Merz demands in Beijing a more "fair" relationship with Germany.

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El Mundo

Friedrich Merz demands in Beijing a more "fair" relationship with Germany.

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Global Times

USS Gerald R. Ford exposed by US media plagued by toilet issue en route to Iran; extended deployment, design issues hinder capability: Chinese expert

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Inbox.lv

Merz urged China to increase investments in Germany

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The New Arab

Germany's Merz meets Xi in China, seeking closer ties

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The Straits Times

Germany's Merz hails China ties as he seeks reset with Beijing

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vijesti.me

Merc in Beijing seeks reset with China

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whbl

Germany’s Merz hails China ties as he seeks reset with Beijing

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Yicai Global

Merz Visits China for First Time as German Chancellor

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