German Chancellor Friedrich Merz secured a commitment from President Xi Jinping on Wednesday (25 February) to increase Chinese imports of high-quality German products, during his first visit to Beijing as Chancellor. The visit aims to reset economic ties amid a growing German trade deficit with China.
Merz, joined by executives from 30 German firms including Volkswagen and BMW, highlighted concerns over market distortions, overcapacity, and an undervalued yuan, noting Germany’s €90 billion trade deficit last year.
Key developments:
• China signalled increased imports and investment cooperation.
• Germany raised concerns over subsidies, overcapacity and the yuan.
• Five agreements signed, covering climate, agriculture and sport.
• Up to 120 additional aircraft expected to be ordered from Airbus.
“There are challenges, which we should talk about today, but the framework in which we operate is exceptionally good and we have worked together very well over the past decades,” Merz said.
Xi added that “the more turbulent and complex the world becomes, the more China and Germany should strengthen strategic communication and enhance strategic mutual trust.”
Merz concluded that despite outstanding issues, the two nations should “emphasise the things we have in common and face the challenges we stand before together,” signalling a commitment to continued dialogue and collaboration.
ℹ️ Reuters
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