German Chancellor Merz Seeks China Balance Amid Trade Deficit, Tech Competition

Merz began his first official visit to China with a clear objective to balance economic interdependence against growing concerns.

“La Germania intende ampliare le relazioni economiche e diplomatiche con la Cina, ci sono grandi potenziali di crescita per entrambi i Paesi”

ANSA

He was accompanied by a delegation of 30 business leaders from key industries.

ANSA

The German government faces an $87 billion trade deficit with China in 2025, rising from $67 billion the prior year.

Merz confronted the politically sensitive issue of China's massive trade surplus.

He urged China to reduce subsidies, allow the renminbi to appreciate, and ensure continued export of key minerals.

Auswärtiges Amt

China responded with a pledge to order up to 120 Airbus aircraft.

Non-Western outlets emphasized Merz's more direct and specific criticisms compared with prior visits.

The government is pushing a more assertive industrial policy blending tax incentives and procurement reforms.

“It is a crucial visit for Friedrich Merz”

BFM

Roughly $20 billion annually will be drawn from cohesion funds to support innovation.

German industry faces mounting pressure as Chinese manufacturers make major technological advances.

Merz is navigating a strategic dance: defending industry, avoiding isolation, and mitigating risks.

Notizie Geopolitiche describes it as an economic armed coexistence.

DW

The visit comes amid credible threats to European energy supply and homeland resilience.