Merz China Visit: Germany Balances Trade & Competition | 2025

by Marcus Liu - Business Editor
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Germany’s Merz Navigates Economic and Security Concerns During China Visit

Beijing – German Chancellor Friedrich Merz arrived in Beijing on Wednesday for a visit focused on economic and security concerns, marking the first such trip by a German chancellor since Olaf Scholz’s visit in 2024. Merz is accompanied by a large delegation of German industry leaders as Germany grapples with a shifting relationship with China, increasingly viewed as both a crucial trading partner and a significant economic competitor.

Economic Tensions and the “Second China Shock”

Germany, like other Western nations, is confronting the challenges of a changing economic landscape shaped by China’s rise. Analysts describe this as a “second China shock,” with Germany facing less preparation than the United States did during the initial period of China’s economic emergence. Chancellor Merz aims to defend German industry against the economic upheaval stemming from Beijing, but the options available are limited. Read more about the economic challenges here.

High-Level Meetings with Chinese Leadership

Upon arrival, Merz was received by Premier Li Qiang with military honors. He is scheduled to hold talks and have dinner with Chinese President Xi Jinping on Wednesday evening. DW News reports that Merz will seek to minimize conflict with China’s top leader.

Ukraine War and China’s Role

The ongoing war in Ukraine is also a key topic of discussion during Merz’s visit, which takes place shortly after the fourth anniversary of Russia’s full-scale invasion. The expectation is that Merz will urge China to apply its influence to bring an end to the conflict, with some suggesting that “if China says stop, the war will stop.”

Conciliatory Approach and Outreach to Xi Jinping

Prior to his departure, Chancellor Merz adopted a conciliatory tone, reaching out to President Xi Jinping. Bloomberg reported on this outreach, signaling a desire for constructive dialogue despite growing tensions.

Past Miscommunication and Clarification

Recent diplomatic exchanges highlight the sensitivity of the relationship. There have been instances of miscommunication, such as a previous instance where statements attributed to President Xi were clarified by the Chinese Foreign Ministry. China Daily reported on this clarification, emphasizing the importance of accurate representation in diplomatic discourse.

Merz’s visit is scheduled to conclude on Friday.

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