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Merz Opens China Trip With Push for Fairer Trade, Signs Narrow Accords

Germany faces a record China trade deficit alongside rare‑earth dependencies.

Overview

  • German Chancellor Friedrich Merz met Premier Li Qiang in Beijing and is due to see President Xi Jinping during a two-day visit focused on market access and cooperation.
  • Both sides signed five limited agreements covering climate and green transition work, animal disease prevention, a poultry products protocol and sports exchanges, with no major commercial breakthrough announced.
  • Germany’s trade gap with China is estimated at roughly €90 billion for 2025 as exports to China fall and imports rise, led by competitive pressure from Chinese electric vehicles and machinery.
  • Merz pressed Beijing to use its influence with Russia over the war in Ukraine while highlighting Europe’s de‑risking push after China tightened export controls on processed rare earths.
  • Traveling with top executives from Volkswagen, BMW and Mercedes‑Benz, Merz sought a more level playing field as China portrays itself as a reliable partner during U.S. tariff uncertainty under President Trump.