Merz heads to Beijing as Germany Inc. reels from ‘China shock’
politico.eu • • world
Key Points:
- Chancellor Friedrich Merz embarks on his first visit to Beijing amid growing challenges in Germany-China relations, as Germany faces a significant trade deficit and manufacturing job losses blamed on China’s economic practices.
- Germany’s previous strategy of "change through trade" with China is now seen as a miscalculation, with industry leaders urging a tougher stance against China’s subsidies, export controls, and market distortions.
- Despite economic pressures, Merz aims to engage cooperatively with Chinese leader Xi Jinping, balancing the need for dialogue with concerns over China’s strategic ambitions and Germany’s industrial dependencies.
- German industry calls for concrete measures to address issues like rare earth export restrictions and unfair competition from subsidized Chinese companies, while Merz must navigate a
