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German Chancellor arrives in Beijing for first visit to China

2026-02-25 07:53:00, Kosova & Bota CNA

German Chancellor arrives in Beijing for first visit to China

The German Chancellor has arrived in China as German businesses sound the alarm about a growing trade imbalance. Germany's imports from China were more than double the value of those exported last year, according to federal statistics.

“We want a partnership with China that is balanced, reliable, orderly and fair,” Friedrich Merz said, before leaving for Beijing. Merz is also expected to pressure China to use its influence with Moscow to help end the war in Ukraine.

However, the huge trade gap is highlighted during these talks, as the Chancellor takes a sizeable business delegation with him.

China has retaken the top spot as Germany’s largest trading partner in 2025, replacing the US. Behind that title lies a grim and worrying imbalance for Germany, the EU’s largest economy. In 2025, goods worth €170.6 billion (£148.8 billion; $200.9 billion) came from China to Germany, an annual increase of 8.8%, while German exports to China fell by 9.7% to €81.3 billion.

The trade relationship with China is eroding the core of German industry, especially in the car, machinery and chemicals sectors, warns Jürgen Matthes at the German Economic Institute (IW).

Matthes, head of International Economic Policy at IW, believes the distortions are largely due to massive Chinese subsidies and currency undervaluation. Beijing has previously said its subsidy policies are transparent and fully compliant with international trade rules./CNA, translated by BBC





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