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February 25, 2026, Germany’s conservative leader Friedrich Merz has signaled a decisive shift in tone toward Beijing, praising the importance of stable relations with China while calling for renewed cooperation during a period of mounting global economic and political strain. His remarks came during high‑level discussions with Chinese President Xi Jinping, a meeting closely watched across Europe and Asia for signs of how Berlin might reshape its China policy in the coming years.
Speaking after the talks, Merz described Germany’s relationship with China as a “central pillar” of international economic stability and stressed that dialogue remains essential even where disagreements persist.
He noted that Germany and China share major responsibilities as export‑driven economies and said that strengthening communication could help prevent trade frictions from escalating into broader disputes. According to people briefed on the meeting, he emphasized predictability and transparency as key elements for building confidence between governments and businesses on both sides.
The meeting took place against a backdrop of heightened global tensions, including ongoing disputes over supply chains, technology restrictions and industrial subsidies. European leaders have increasingly debated how to balance economic engagement with Beijing against concerns about market access, security and strategic dependence. Several EU governments have in recent years tightened investment screening rules and adopted more cautious positions on sensitive technology transfers.
Concerns have grown sharper as Chinese exports are increasingly seen as threatening factory jobs in parts of Europe, particularly in manufacturing sectors facing intense price competition. Germany’s imports from China rose 8.8% to 170.6 billion euros ($201 billion) last year, while its exports to China fell 9.7% to 81.3 billion euros, widening a trade imbalance that has fueled political debate in Berlin and Brussels.
Merz acknowledged these pressures but argued that constructive engagement, rather than confrontation, offers the best path forward. He said sustained diplomatic contact can reduce misunderstandings before they evolve into crises, while also giving European policymakers space to address structural trade concerns through coordinated action.
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Chinese officials likewise emphasized cooperation, highlighting opportunities in green technology, manufacturing and infrastructure investment. Beijing has sought to reassure European partners that it remains committed to open trade and multilateral institutions, particularly as geopolitical rivalries intensify worldwide. Officials pointed to climate collaboration and industrial modernization as areas where German engineering expertise and Chinese production capacity could complement each other if political conditions remain stable.
Analysts say the tone of the meeting between Friedrich Merz and Chinese officials suggests a pragmatic approach from both sides, underscoring the importance of stable Germany‑China relations. Germany remains China’s largest trading partner in Europe, and many German companies continue to rely heavily on the Chinese market for growth, especially in the automotive, chemical and machinery sectors.
Merz also indicated that Germany would continue coordinating closely with its European Union partners on China policy, underlining that any reset would be pursued within a broader European framework rather than through unilateral action. He stressed that unity among EU states strengthens their negotiating position and ensures that economic cooperation aligns with shared standards and interests. Officials familiar with internal discussions say this emphasis reflects Berlin’s desire to avoid divisions within the bloc while still preserving room for national economic priorities.
The discussions did not ignore sensitive issues. According to officials familiar with the talks, both sides raised concerns ranging from trade imbalances to regulatory barriers and market transparency.
European representatives also reiterated calls for fair competition conditions for foreign firms operating in China, while Chinese counterparts highlighted their own expectations for non‑discriminatory treatment of Chinese companies abroad. Still, the willingness to address disagreements directly was portrayed as a sign of diplomatic maturity rather than division and suggested that both governments see value in frank but controlled exchanges.
Observers note that Merz’s outreach reflects a wider reassessment underway in several European capitals. After years marked by friction and caution, policymakers are increasingly exploring ways to stabilize relations with Beijing without compromising strategic priorities such as economic security and technological sovereignty.
Merz said after Wednesday’s meetings that he was satisfied with the talks and underlined the potential for new business deals between the two sides. He pointed in particular to discussions surrounding a possible order by China for up to 120 aircraft from European manufacturer Airbus, describing it as a sign that practical economic cooperation can continue despite broader tensions.
Some governments are considering targeted cooperation in sectors where mutual benefits are clear, while maintaining safeguards in areas deemed strategically sensitive. Whether this effort will translate into concrete policy shifts remains to be seen, but the latest meeting indicates that channels of communication remain open and that neither side is eager for further deterioration.
For now, the message from Berlin appears clear: Germany intends to pursue a balanced China strategy that protects its economic interests while keeping diplomatic lines active. Officials say such an approach reflects recognition that global challenges—from climate change to supply‑chain resilience—cannot be addressed effectively without coordination among major economies.
As global uncertainty continues to test international partnerships, both sides seem eager to present their relationship as a source of stability rather than tension, signaling cautious optimism that practical cooperation can coexist with strategic caution.
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