Feb 23 • 15:00 UTC 🇨🇳 China South China Morning Post

‘China shock’ hangs over German leader Friedrich Merz’s first visit to Beijing

German leader Friedrich Merz's first visit to Beijing is under the shadow of changing attitudes towards China within German industry, emphasizing the need for a balanced trade approach.

Friedrich Merz, the German leader, is set to navigate the complexities of trade relations with China during his inaugural visit to Beijing. The meeting comes at a time when tensions between Brussels and Beijing are escalating, and there are contrasting opinions on how to approach trade policy. On one side, there are calls for a more restrictive stance against China, while others advocate for a more measured approach, particularly considering the significant ties that German industries maintain with their Chinese counterparts.

Merz's challenges are underscored by a rapidly evolving sentiment within German industry, exemplified by Oliver Richtberg from the Mechanical Engineering Industry Association (VDMA). Richtberg points out that the industry is grappling with unprecedented challenges posed by China, indicating a shift in the traditional view of economic relations. The phrase 'China speed' reflects how quickly perceptions are changing, driven by competitive pressures and calls for a strategic reassessment of trade interactions.

As the German industry stands at a crossroads in its dealings with China, Merz's visit is critical in determining the future direction of bilateral trade. The outcomes of this engagement could significantly influence not only Germany's economic landscape but also its stance within the broader European Union regarding China. The need for a balanced policy that considers both the economic benefits and the geopolitical implications of trade with China will be pivotal as Merz seeks to address these multifaceted challenges.

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