Prior to Merz’s visit, several German business executives urged the chancellor to adopt a tougher stance on China’s industrial strategies, which give its firms price benefits through means such as subsidies, strategic dumping, and an undervalued currency.
Responding to these concerns, Merz called for fair competition, emphasizing the need for transparency, reliability, and adherence to established rules.
He also expressed his intention to reduce a trade deficit that has increased fourfold since 2020.
“This trend is harmful,” Merz stated. “We are addressing this issue and seeking ways to diminish the trade deficit.”
Meanwhile, Merz highlighted ongoing potential in relations with China, announcing a Chinese agreement to purchase up to 120 Airbus planes. Accompanied by a 30-member executive delegation, Merz indicated that further business agreements are forthcoming.
Though China’s role as a German export market has diminished in recent years, it was still the sixth-largest recipient of German exports in 2025.
Merz also pressed Chinese leaders to leverage their influence to cease Russia’s aggression in Ukraine, specifically by stopping the export of dual-use goods to the Kremlin.
“We understand that China’s signals carry significant weight in Moscow,” Merz remarked. “This holds true for both actions and statements.”
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