Merz says Germany encourages any additional market openings in China

Merz says Germany encourages any additional market openings in China

Germany Encourages Expanded Market Access in China Amid Strategic Trade Dialogue

German Chancellor Friedrich Merz emphasized during his inaugural visit to China that Germany supports further market openings in the world's second-largest economy, provided they align with reciprocal trade principles and supply chain resilience. The visit, which includes high-level meetings with President Xi Jinping and Premier Li Qiang, underscores Germany's dual focus on addressing trade imbalances while deepening collaboration in strategic sectors such as renewable energy, artificial intelligence, and industrial digitalization according to reports.

China surpassed the United States as Germany's largest trading partner in 2025, with bilateral trade reaching 251.8 billion euros ($296.75 billion), driven by a 10.5% annual increase in Chinese exports to Germany. However, the trade deficit has widened to nearly 90 billion euros, prompting calls for structural reforms to address systemic challenges like overcapacity, export restrictions, and uneven market access as reported. Merz reiterated Germany's commitment to "de-risking" rather than "decoupling," advocating for balanced partnerships that reduce dependencies while preserving commercial ties according to Bloomberg.

German industry leaders, including representatives from Volkswagen, BMW, and Siemens Energy, highlighted concerns over China's dominance in critical raw materials and manufacturing. They urged Beijing to ease export controls on rare earths and address pricing pressures from state-subsidized competitors as Reuters reported. Meanwhile, Chinese officials reiterated their openness to German investment in emerging sectors, aligning with China's 15th Five-Year Plan (2026–30), which emphasizes high-standard openness and innovation-driven growth according to reports.

The visit reflects broader European efforts to recalibrate economic ties with China amid shifting global dynamics. While Merz acknowledged the need for Germany to enhance its competitiveness, he stressed that cooperation on global challenges—such as climate change and the Ukraine war—requires sustained dialogue and mutual trust according to AP News.

As German businesses navigate a complex landscape of opportunities and risks, the outcome of these discussions will likely shape the trajectory of Sino-German economic relations in an era of intensifying geopolitical and industrial competition.