German Chancellor Friedrich Merz has begun his first diplomatic trip to China since taking office in May 2025. The head of government is accompanied by a record delegation of 30 representatives from Germany's largest corporations. The visit takes place against the backdrop of rising trade tensions, Germany's deepening trade deficit with Beijing, and a complicated geopolitical situation resulting from US tariff pressure.

Merz's Five-Point Plan

The chancellor presented guidelines for reducing dependence, building domestic strength, and ensuring fair competition rules in trade with China.

Fighting the China Shock

The German economy is losing about 10,000 jobs per month due to China's dominance, which Merz aims to stop through transparent market rules.

Record Business Delegation

The chancellor is accompanied by 30 CEOs of Germany's largest corporations, underscoring the importance of economic relations despite political tensions.

The Issue of the War in Ukraine

Merz intends to persuade Beijing to use its influence on Russia to de-escalate the conflict ongoing at the EU's eastern border.

On Tuesday, February 24, 2026, Chancellor Friedrich Merz embarked on his first trip to Beijing, marking a significant shift in the German diplomatic schedule – Merz waited ten months after his inauguration to take this step. Before departure, the chancellor presented a five-point plan intended to set the framework for a new policy towards the Asian power. According to Merz, the key is to reduce one-sided dependence on Chinese supplies while maintaining intensive trade contacts. The visit's program includes meetings with Premier Li Qiang and Chairman Xi Jinping. The main challenge for the delegation is the so-called "China shock," the process of German industry being displaced by subsidized competition from China. Germany is currently losing about 10,000 jobs per month in the manufacturing sector, threatening the foundations of its economy. China, which in 2025 once again became Germany's largest trading partner, has ceased to be merely a sales market, becoming an aggressive technological rival. Merz announced he would demand that relations be based on principles of fair competition and transparency, particularly in the automotive and steel sectors. Berlin's relations with Beijing were based for decades on the doctrine of "change through trade" (Wandel durch Handel), which assumed that deepening economic ties would lead to the democratization of China. This strategy was deemed ineffective after Russia's invasion of Ukraine in 2022. High-level talks will also address global security issues. The German leader intends to call on China to exert pressure on Russia to end the war in Ukraine. In the background is also the policy of de-risking, which is causing concern among German industrial giants such as Volkswagen and BASF. The chancellor must balance protecting the domestic market with the interests of exporters, for whom China remains a key field of investment, as confirmed by the record 7 billion euros invested by German companies in China last year. „Wettbewerb ist gesund, solange er unter fairen und transparenten Bedingungen stattfindet.” (Competition is healthy as long as it takes place under fair and transparent conditions.) — Friedrich Merz Germany-China Trade in 2025: Import from China: 170, Export to China: 80, Total Trade: 250

Mentioned People

  • Friedrich Merz — Chancellor of Germany (CDU), head of the delegation traveling to China.
  • Xi Jinping — President of the People's Republic of China.
  • Li Qiang — Premier of the People's Republic of China.