Merz Meets Xi In China To Strengthen Economic Ties

German Chancellor Friedrich Merz met Chinese President Xi Jinping in Beijing as Berlin and Beijing seek to deepen their long-standing economic partnership at a time of global uncertainty fueled by U.S. President Donald Trump’s tariff policies and unpredictable foreign agenda.

China, now Germany’s largest trading partner after overtaking the United States last year, remains both a key economic ally and a systemic rival to the West. During the talks, both leaders signaled interest in closer cooperation. Merz described the visit as a “great opportunity” to expand economic ties, while Xi said he was ready to take relations to “new levels” and emphasized that he has “always attached great importance to Sino-German relations”. Merz also expressed hope that joint government consultations, paused due to political changes and the pandemic, would resume “very soon”.

Accompanied by a large delegation of business leaders, Merz underscored Germany’s need for “economic relations all over the world” but cautioned, “we should be under no illusions,” noting that China now “claims the right to define a new multilateral order according to its own rules”.

In meetings with Premier Li Qiang, agreements were signed on climate change and food security, while Li warned that “unilateralism and protectionism have gained ground and even become prevalent in some countries and regions” and urged both nations to “jointly safeguard multilateralism and free trade”.

Despite cooperation, tensions persist over trade imbalances, export controls on critical materials, and what German industry leaders describe as “state-driven systemic competition”. As China seeks to position itself as a stable global partner, German officials are also expected to press Beijing on fair competition, structural reforms, and its influence over Russia’s war in Ukraine, amid concerns that unresolved issues could spark “new trade conflicts with the EU”.