Beijing, China – German Chancellor Friedrich Merz has arrived in Beijing for a three-day visit, marking his first trip to China since taking office. The approximately 7,500-kilometer distance between Berlin and Beijing underscores the importance of the relationship, even as economic imbalances and geopolitical concerns cast a shadow over the talks. The visit, which began Wednesday, February 25, 2026, aims to address a growing trade gap and discuss China’s role in resolving the ongoing conflict in Ukraine.
Merz’s trip comes as China has once again become Germany’s largest trade partner, surpassing the United States in 2025. However, this renewed status is accompanied by a significant imbalance: imports from China to Germany totaled €170.6 billion (£148.8bn; $200.9bn) in 2025, an 8.8% increase, while German exports to China fell by 9.7% to €81.3 billion. This disparity, according to Jürgen Matthes at the German Economic Institute (IW), is “eroding the core of German industry, especially in the car, machinery and chemicals sectors.”
Knapp 7.500 Kilometer liegen zwischen Berlin und Peking. Eine Entfernung, die wir seit Jahren überbrücken, um den Dialog mit China zu suchen. pic.twitter.com/wJq9q9q999
— Bundeskanzler Friedrich Merz (@bundeskanzler) February 25, 2026
Addressing the Trade Imbalance
Before departing for Beijing, Merz stated that it would be a mistake to “decouple” Germany from China, as reported by the BBC. However, he also emphasized the need for a “balanced, reliable, regulated and fair” partnership. A key focus of the discussions will be the factors contributing to the trade imbalance, which Matthes attributes to “massive” Chinese subsidies and currency undervaluation. Beijing maintains that its subsidy policies are transparent and comply with international trade rules and that it is committed to a floating exchange rate regime.
The German delegation accompanying Merz includes representatives from numerous industries, reflecting the broad economic interests at stake. The situation is particularly concerning for the German automotive industry, which is facing increased competition from Chinese electric vehicle manufacturers and navigating rising trade tensions related to tariffs on Chinese imports.
Ukraine and Geopolitical Concerns
Beyond economic issues, Merz is expected to urge China to leverage its influence with Moscow to aid bring an end to the war in Ukraine. The conflict, now entering its fifth year, remains a major point of contention in international relations. While the extent to which China can or will exert pressure on Russia remains uncertain, the German government views dialogue with Beijing as crucial in seeking a peaceful resolution.
A Risky Partnership?
The visit takes place against a backdrop of increasing scrutiny of China’s economic and political practices. DW News reports that Merz acknowledged the need to address these concerns, stating before his departure that “the great geopolitical questions can no longer be solved without roping in China.” The challenge for Germany lies in balancing its economic interests with its commitment to democratic values and international norms.
The German chancellor is attempting to raise concerns about business and competition during roundtable trade talks in Beijing, according to DW News. These concerns include increased tariffs and trade tensions as the EU attempts to raise barriers to cheap Chinese electric car imports.
Looking Ahead
Chancellor Merz’s visit is scheduled to continue through Friday, with further meetings planned with Chinese Premier Li Qiang and potentially President Xi Jinping. The outcomes of these discussions will likely shape the future of German-Chinese relations for years to come. The German government has not yet announced specific follow-up actions, but officials have indicated that they will closely monitor the implementation of any agreements reached during the trip.
The situation in Ukraine and the ongoing trade imbalance are expected to remain central to the dialogue. Germany will be looking for concrete steps from China to address these issues and demonstrate a commitment to a more balanced and sustainable partnership. Further updates on the Chancellor’s visit will be available from official government sources.
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