Inaugural go to to Beijing: Why Merz is touring to China | EUROtoday

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As of: February 24, 2026 • 9:53 p.m

Chancellor Merz is beginning his first journey to China – an inaugural go to that’s unlikely to be straightforward. The focus is on truthful competitors guidelines for German firms, uncommon earths and the battle in Ukraine.

An evaluation by Uli Hauck, ARD capital studio

The Chancellery says that the Chancellor has ready meticulously for his first journey to China. Last week there was a gathering with German China specialists, coordination with the EU and discussions with European heads of state and authorities. Also as a result of China is the largest supporter of the aggressor Russia within the Ukraine battle and could possibly be decisive for a peace answer.

The CDU’s China knowledgeable, Nicolas Zippelius, subsequently assumes that the Chancellor will overtly handle the difficulty of the Ukraine battle in a one-on-one dialog with President Xi Jinping. A fast change in course alone appears unlikely. After all, China advantages from low-cost Russian vitality and the sale of so-called digital dual-use items to Russia is tolerated.

Balancing act between criticism and concord

The incontrovertible fact that the Chancellor was acquired by President Xi Jinping shortly after the beginning of the Chinese New Year was seen in Berlin as a particular Chinese kindness. And the Chancellor additionally apparently needs to make his inaugural go to to Xi as harmonious as doable.

In Beijing, he’s unlikely to specific criticism as clearly as he did just lately on the Munich Security Conference, when Merz accused the Chinese of systematically exploiting the dependencies of different states. And the clear statements made on the CDU celebration convention that freedom of expression, freedom of faith and freedom of the press will not be in fine condition in China are additionally more likely to be expressed by Merz in a toned-down method at finest.

Because there’s a lot at stake throughout the inaugural go to, particularly for the lame German economic system. She just lately had large issues together with her Chinese enterprise. And that is most likely why the German Chancellor is accompanied by the biggest enterprise delegation in years.

Unfair competitors and uncommon earths

The dependencies and issues of German firms in China have just lately turn into even better, says Bernhard Bartsch, from the China assume tank MERICS. There is now a “record trade deficit with China” and exports within the auto business and mechanical engineering are declining.

Chinese firms have turn into “fundamentally better” in recent times and are forward of us within the areas of electrical vehicles and batteries, says overseas commerce knowledgeable Jürgen Matthes from the German Economic Institute, however there are additionally large distortions of competitors on the world markets. Many research have proven that China subsidizes its merchandise far more than different nations.

One consequence: Germany, an export nation, is dropping increasingly share of the world market. In addition, there’s an alternate charge for the Chinese forex that’s significantly favorable for Chinese exports. According to Jürgen Matthes, this creates “huge cost advantages that are ultimately unfair in nature”.

China’s strategic determination to purchase fewer items from overseas additionally has a destructive affect on German firms. Companies that need entry to the large market are more and more producing in China for China. Accordingly, investments by German firms in China – regardless of the unsure scenario – elevated to an estimated seven billion euros final 12 months. Suppliers from Germany, then again, are more and more coming away empty-handed. The export of merchandise straight from Germany to China has fallen.

No straightforward options in sight

According to Jürgen Matthes, German politicians pay an excessive amount of consideration to the pursuits of German firms which might be invested in China. But politics should additionally assist small and medium-sized firms on this nation that don’t have the chance to easily go to China.

Problems and dependencies have usually been recognized, however there will probably be no straightforward options. The Chancellor needs to attempt harmonious communication throughout his inaugural go to as a substitute of counting on confrontation. It stays to be seen whether or not the “Foreign Chancellor” will probably be profitable on his inaugural go to to China.