Back to today’s briefing

Story perspectives

Chancellor Merz Visits China to Boost Economic Ties

2/25/2026

49 10 Full Breakdown

Summary

Merz Boosts Trade

German Chancellor Friedrich Merz traveled to China to strengthen economic ties amid rising competition from Chinese firms.
Merz emphasized fair cooperation and said he would address trade imbalances and China's support for Russia in the Ukraine war.
The trip follows visits by other Western leaders and aims to bolster Germany's position amid a record trade deficit with China.
Merz is accompanied by business leaders seeking to expand German sales.

History

Historical Context

The 1979 trade agreement between China and West Germany marked a pivotal shift in their economic relations, leading to a 300% increase in bilateral trade over the following decade. As Germany's largest trading partner in Europe, China has since evolved into a competitor, with German automotive market share in China plummeting from 24% in 2020 to 12% by 2025, prompting ongoing diplomatic efforts to address trade imbalances.

1 of 2

Merz Boosts Trade

German Chancellor Friedrich Merz traveled to China to strengthen economic ties amid rising competition from Chinese firms.
Merz emphasized fair cooperation and said he would address trade imbalances and China's support for Russia in the Ukraine war.
The trip follows visits by other Western leaders and aims to bolster Germany's position amid a record trade deficit with China.
Merz is accompanied by business leaders seeking to expand German sales.

1 / 2