Merz invites Japan to back trade alliance as China asks Germany to be 'rational'

Key Points:

• German Chancellor Friedrich Merz urged Japan to support a global alliance of like-minded partners aimed at defending rules-based trade and resisting tariffs and economic coercion, highlighting challenges posed by major powers like China and the US.
• Merz emphasized the need for coordinated action among allies to present a united front against violations of global trade rules, referencing similar calls by Canadian Prime Minister Mark Carney for middle powers to collaborate.
• Germany faces a growing trade deficit with the Asia-Pacific region, particularly due to declining exports to China, prompting efforts to diversify supply chains and secure critical raw materials, with Japan's experience in supply chain resilience noted as a model.
• Merz proposed closer cooperation between Germany and Japan, including exploring a joint fighter jet project and supporting inter-regional trade agreements such as the EU's talks with the CPTPP members.
• Japanese Prime Minister Sanae Takaichi welcomed Germany's engagement, and both leaders committed to strengthening cooperation on rules-based trade and defense collaboration to uphold shared values of free and fair trade.