Merz from Germany Urges for a More Balanced Trade Relationship with China Following Meeting with Xi

Germany’s Call for a Reset with China

German Chancellor Friedrich Merz emphasized the need for a “reset” in Germany’s relations with China following his recent meeting with Xi Jinping.

This week, Merz and his delegation traveled to Beijing, where they had discussions with Xi and Premier Li Qiang. Prior to the trip, he expressed Germany’s desire for a partnership with China that was balanced, reliable, and fair.

Upon his arrival, Merz quickly met with Premier Li and later, just a few hours after that, he had a discussion with Xi. They signed five agreements focused on issues like climate change, animal disease prevention, and protocols for poultry products, in addition to some sports-related agreements.

After meeting with Xi, Merz stated on social media, “It’s a great opportunity and a great responsibility. I want to further develop the German-China partnership, especially considering the challenges in international trade.” He also mentioned the importance of collaborating closely with European partners.

Speaking to reporters in Beijing, he reaffirmed his commitment to enhancing the strategic partnership with China, pointing out the significant trade potential between two of the world’s largest economies.

During discussions about competition, Merz raised concerns about the trade imbalance, noting that the trade deficit between Germany and China has surged to over 80 billion euros—a fourfold increase since 2020. He expressed urgency in addressing this situation, saying, “This momentum is not healthy, and we need to explore ways to reduce this deficit.”

Merz also urged China to leverage its influence to help end the war in Ukraine. He reiterated Germany’s adherence to the one-China policy, which asserts that Taiwan is part of China, but emphasized that any unification efforts should be pursued peacefully, rather than through military means.

He welcomed China’s stated commitment to regional peace and anticipated further cooperation on diplomatic efforts for peace. He highlighted Germany’s position of not supplying dual-use items to Russia that could be used against Ukraine.

According to China’s Ministry of Foreign Affairs, Xi proposed three important positions aimed at enhancing Sino-German relations, emphasizing the need for trust, innovative collaboration, and cultural exchanges between the two nations.