German Chancellor Friedrich Merz begins his first official visit to China on Wednesday—a trip many analysts believe will bring new momentum to relations between two of the world’s major economic powers.
Ewald Koenig, a senior German political analyst, told Anadolu that Merz’s visit signals a major shift in Berlin’s China policy—from a values-driven approach to a pragmatic one focused on economic interests and global stability.
“The previous German governments were very much focused on values, democracy and human rights issues,” he said, recalling how public criticisms by German ministers and politicians often strained relations with Beijing.
“Chancellor Merz, however, is pursuing a different foreign policy—one that is more pragmatic and realistic,” Koenig added. “His Beijing visit shows that he is prioritizing improved relations at a time of growing uncertainty and a fracturing world order.”
Koenig, who runs the analysis platform diplo.news, said the Merz government prefers addressing political concerns behind closed doors while fostering trustful dialogue and respectful relations between equals.
Berlin shifts strategy amid Trump uncertainty
The trip is Merz’s first to China since taking office last year. It comes at a pivotal moment in German foreign policy as Berlin recalibrates its stance amid the unpredictable policies of US President Donald Trump.
Earlier this month, Merz told the Munich Security Conference that the world has entered a dangerous phase of great-power rivalries, with escalating wars and conflicts threatening peace and security. He urged the European Union to forge new partnerships and pursue closer dialogue with nations that respect international law and are willing to collaborate on global challenges.
Professor Eberhard Sandschneider, a prominent German expert on China relations, said the Merz government is deeply concerned about Trump’s volatile and chaotic policies, underscoring the need for stable ties with Beijing in a turbulent world.
“The old world order that was favorable for Germany over decades has come to an end, but the end was not brought about by China but by the United States and Donald Trump,” he told Anadolu. “That comes as a shock to many in our foreign policy elite, and now we are looking for other partners,” he said.
Germany’s political relations with China have faced ups and downs in recent years, with Berlin often viewing Beijing with suspicion. The previous government’s China strategy document described China as a “competitor” and “a systemic rival.”
Sandschneider noted that while the document remains unchanged on paper, the government’s actions indicate a departure from that framework.
“It was a foreign policy based on moral values, which has been failing,” he said. “And China no longer accepts being lectured about values or human rights by countries with their own problems—and often pushes back, accusing them of double standards.”
Economy, trade top the agenda
Analysts say the policy shift is also rooted in economic realities: China’s rising role as an investment hub for German firms, their reliance on China for critical minerals, and a ballooning trade deficit.
China is Germany’s largest trading partner, despite periodic political frictions. In 2025, China surpassed the US in total trade volume, with bilateral exports and imports hitting €251.8 billion ($296.6 billion).
Koenig noted that a sizable business delegation will join Merz on his three-day visit, representing sectors including automotive, machinery, technology, construction, energy, environmental technology and finance. He highlighted a surge in German investments in China in recent years.
“While Chancellor Merz is seeking to improve relations with China, it doesn’t mean that everything is okay—significant challenges remain,” he said.
He cited Germany’s record €87 billion trade deficit with China last year, adding: “There is much to discuss in addressing this issue, problems faced by German companies in China, and reducing one-sided dependencies remains a priority for the German government.”
Experts say the economic dynamic has transformed dramatically. Decades ago, German firms leveraged technological superiority by shifting production to China for low-cost labor. Now, the landscape has flipped.
“In the past, we had the technology, we had the knowledge, and the Chinese had the cheap labor forces. That is completely different today,” Sandschneider said. “Today China is the technological leading power in this world on eye level with the US. Chinese companies are basically flooding European markets with relatively cheap and high-technology products.”
Many German companies, including auto giants, now contend that Chinese rivals outperform them through unfair pricing, bolstered by state support and an undervalued currency.
Chancellor Merz is expected to raise these concerns with Chinese leaders, along with Beijing’s restrictions on critical mineral exports.
“This will certainly be one of the Chancellor’s major objectives during his visit. A solution is only possible through negotiation with China,” he said. “We are dependent on rare earths. We need them. China is the only country in the world processing rare earths in a considerable way, up to 90% of the worldwide amount.”
German manufacturers are heavily dependent on China for rare earth elements—critical materials essential for producing wind turbines, electric vehicles, robotics, medical equipment and defense systems.
China’s limitations on rare earth exports-following tensions with the US last year-made some products extremely difficult to obtain, driving up prices and forcing some German manufacturers to halt production.
ANEWS
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