During a recent visit to China, German Chancellor Friedrich Merz engaged in talks with Chinese President Xi Jinping, emphasizing the importance of enhanced cooperation between the two nations, as both are among the world's foremost industrial powers. Merz highlighted that there are significant opportunities for the development of bilateral relations, with Germany being the third-largest and China the second-largest economy globally, as measured by GDP. In response, Xi echoed Merz's sentiments by calling for increased strategic communication and mutual trust, especially in light of a rapidly changing global environment. He underscored the necessity for both countries to act as reliable partners and defenders of free trade.

This diplomatic meeting comes amid growing tensions regarding trade policies, particularly since the Trump administration has been imposing tariffs on numerous imports, complicating the international trade landscape. Various Western leaders, including those from the UK, Canada, Iceland, and Finland, have begun visiting China this year, seeking to bolster ties. Notably, Merz's discussions in China occur in a context where the recent U.S. tariff actions have exacerbated market uncertainties, prompting European nations to reevaluate their dependencies on Chinese supply chains and trade practices.

Furthermore, Merz raised concerns about the need for fair practices in bilateral cooperation, urging China for greater market openness amidst worries from the German industry about trade imbalances, notably a significant deficit with China reaching approximately 89 billion euros. The German business community has raised issues regarding China's excessive production and state-subsidized products flooding European markets, which threatens fair competition. As European countries navigate the complexities of supply chain risks and dependencies on China, Merz’s visit may set a critical precedent for the future of EU-China relations.