On the 25th, German Prime Minister Merz will meet with Chinese President Xi Jinping in Beijing, marking his first visit to China since taking office last May. This meeting serves as a litmus test for the future relations between Germany and China, the world's second and third largest economies, respectively. According to Julia Grolhler, a researcher at the German Institute for Global and Area Studies (GIGA) specializing in European-Chinese relations, the primary aim of Merz's visit is to address pressing economic challenges that are closely tied to China, such as the complex dependency of the German automotive industry on the Chinese market and issues regarding market access asymmetries due to Chinese regulations.

The implications of this visit are significant, particularly in light of China's semiconductor export restrictions that have severely impacted the German economy. If an agreement can be reached to ease these export regulations, Merz's visit could be deemed a substantial success. This highlights the interconnectedness of geopolitical developments and economic negotiations as Germany seeks constructive dialogue with China, given the competitive intricacies of their bilateral relationship.

Germany has classified China as a "partner, competitor, and systematic rival," a view also adopted by the European Union. Under Merz's administration, there appears to be a shift from a pure engagement-focused approach with China towards a more risk-mitigating strategy. While maintaining essential cooperation in key areas, the urgency to reduce economic dependence on China has become more pronounced. The deepening rift between the West and China may possibly catalyze Germany's moves to bolster relations with China in terms of business, reflecting broader changes in Europe's strategic outlook towards Beijing.