China-Germany ties ahead of Merz’s visit

German Chancellor Friedrich Merz completed his first official visit to China from February 24 to February 27, 2024. This visit comes at a time when China has become less reliant on Germany, despite being Germany's top trading partner. The relationship has been complicated by a record trade deficit of €89 billion (approximately US$105.6 billion), as China's economic slowdown has reduced demand for German exports, while Germany's demand for Chinese goods continues to grow. Merz emphasized the importance of “good cooperation” between the two nations, particularly in light of uncertainties posed by the Trump administration's trade policies (South China Morning Post, The New York Times). During his visit, Merz characterized the trip as “worthwhile,” noting that China is set to purchase up to 120 additional aircraft from Airbus SE, which operates assembly lines in Tianjin. This deal is significant for German economic interests, especially for the aerospace sector (South China Morning Post). However, Merz also delivered a blunt warning to China regarding trade issues, indicating that the relationship is complex and may be influenced by broader European concerns beyond just the dynamics with the United States (The New York Times). The timing of Merz's visit was notable, as it was proposed by the Chinese side shortly after the Lunar New Year holiday, which German officials interpreted as a positive omen for discussions (South China Morning Post). The visit is seen as a critical test for Merz in establishing a relationship with Chinese President Xi Jinping and promoting trade that favors the German economy (Euronews, South China Morning Post). As Germany aims to find “the right balance of cooperation” with China, the visit reflects ongoing tensions and competition, particularly for German car manufacturers facing increased competition from Chinese firms (Euronews).