Wednesday, February 25, 2026-Germany’s new chancellor, Friedrich Merz, arrives in Beijing under mounting economic pressure as fears of a renewed “China shock” dominate the agenda.
German manufacturers are grappling with surging Chinese exports in electric vehicles, solar panels, and industrial machinery — sectors long considered pillars of German strength. Business leaders are demanding clarity on trade protections, market access, and supply chain resilience as competition intensifies.
At the center of discussions will be Germany’s trade imbalance with China and the broader strategic recalibration underway in Germany. Policymakers are increasingly wary of overdependence on Chinese supply chains, especially after recent global disruptions exposed vulnerabilities. Yet German automakers and exporters remain deeply tied to the Chinese market, making a clean economic break unrealistic.
The stakes are high. Europe’s largest economy must balance protecting domestic industry with maintaining critical trade ties. Merz’s visit signals urgency: Berlin wants fair competition, stronger safeguards against dumping, and a more level playing field. How Beijing responds could shape the next phase of Europe-China economic relations — and determine whether Germany can shield its industrial base from another destabilizing shock.
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