In early 2026, German Chancellor Friedrich Merz embarked on a high-stakes diplomatic mission to Beijing, marking his first official visit to China since taking office in May 2025. The visit, occurring from February 25 to 26, 2026, highlights a pivotal shift in Europe’s largest economy as it attempts to navigate a path between deep-rooted economic dependence and the emerging geopolitical realities of a “new world order.”
The Economic Reset: From Dependency to “Pragmatic Engagement”
For nearly a decade, China has been Germany’s most important trading partner, and latest figures from the Federal Statistical Office confirm that 2025 was no exception. Bilateral trade reached approximately €251.8 billion ($296.6 billion), with China reclaiming its top spot over the United States. However, the nature of this relationship has turned increasingly lopsided. Germany’s trade deficit with China ballooned to a record high in 2025, driven by a 9.7% drop in German exports and a surge in Chinese imports.
Chancellor Merz arrived in Beijing accompanied by a delegation of roughly 30 high-level business executives—the largest such group since the Angela Merkel era. The delegation included leaders from industrial titans like Volkswagen, BMW, Siemens, Bayer, and Adidas. Their presence underscores a “pragmatic” approach: while Merz has previously warned against “illusions” regarding Beijing’s intentions, he recognizes that German prosperity and jobs remain inextricably linked to the Chinese market.
High-Level Diplomacy in the Great Hall
Merz’s itinerary began with military honors and meetings with Premier Li Qiang and President Xi Jinping. The rhetoric from the Chinese side focused on stability and multilateralism. President Xi emphasized that as the world’s second and third-largest economies, Germany and China have a “shared responsibility” to maintain global supply chains and resist protectionism—a thinly veiled reference to the tariffs and trade barriers emerging from the United States under the second Trump administration.
In his talks, Merz pushed for a “fairer” relationship. “We have very specific concerns regarding our cooperation, which we want to improve and make fair,” Merz stated during his meeting with Premier Li. These concerns center on market access for German firms, the protection of intellectual property, and the “growth gap” where Chinese manufacturers, particularly in the electric vehicle (EV) sector, are beginning to outpace their German counterparts in both innovation and price.
Navigating the Geopolitical Tightrope
Beyond trade, the visit was clouded by significant security and human rights disagreements. Merz, known for his more assertive foreign policy stance, was expected to raise China’s ongoing support for Russia’s position in the war in Ukraine. In a speech to the Bundestag earlier this year, Merz called on Europe to “learn the language of power politics,” signaling that Germany will no longer separate its economic interests from its security concerns.
The Chancellor’s visit also included a symbolic tour of the Forbidden City and visits to high-tech hubs. In Hangzhou, Merz visited Unitree Robotics, a leader in humanoid robotics, and Siemens Energy. This part of the trip was designed to witness firsthand the technological leap China has made, moving from a low-cost manufacturer to a global leader in “future industries” like AI and green energy.
The “New Normal” of Sino-German Ties
Analysts describe Merz’s strategy as “de-risking” rather than “de-coupling.” The goal is to reduce critical dependencies on Chinese raw materials—such as rare earths—while maintaining access to the massive Chinese consumer base. This “new normal” is characterized by intense competition. Whereas the relationship was once complementary—Germany provided the machines, and China provided the labor—Chinese firms are now direct competitors to the German “Mittelstand” and automotive giants on the global stage.
As Merz prepares for his upcoming trip to Washington, his visit to Beijing serves as a signal that Germany intends to maintain strategic autonomy. By engaging in open, if difficult, dialogue with Xi Jinping, Merz is positioning Germany to act as a stabilizer in a turbulent global environment, even as the “rules-based order” of the past 80 years undergoes a fundamental transformation.
Sources & Further Reading:
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Trade, Ukraine and new world order are top concerns on German leader’s visit to China – AP News
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China overtakes US as Germany’s top trading partner – The Guardian
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Germany’s Merz Arrives in China For Talks on Trade, Security – Kyiv Post
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A strategic pivot: Merz’s China visit and the future of Sino-German relations – CGTN
