The German Chancellor Friedrich Merz's visit to China, which will begin on February 25, 2026, is more than a regular diplomatic journey. This is simply a mission of tremendous species weight, taking place at a time erstwhile the German economy, erstwhile the power of Europe, faces serious problems and the global power strategy undergoes dynamic transformations. A three-day visit, including talks in Beijing and visits to Hangzhou's technological hub, is closely observed both in Berlin and worldwide.
Change of course: From hawk to pragmatic
Until recently, Friedrich Merz, as the leader of the opposition, was 1 of the loudest critics of besides mild, in his opinion, the Olaf Scholz government's policy towards China. He called Beijing a "system rival", warned against strategical dependence and criticized decisions to let Chinese investments in key infrastructure, like the port of Hamburg. His rhetoric entered into a transatlantic, more confrontational course towards authoritarian regimes.
However, after taking office as Chancellor, Merz made a clear turn towards pragmatism. The reasons for this volt are complex. First, hard economical reality. The German industry, especially automotive and chemical, is profoundly dependent on the Chinese market. In 2025 China again became Germany's largest trading partner, and Berlin's trade deficit with Beijing reached a evidence of EUR 90 billion. In the face of rising energy costs, bureaucracy and failure of competitiveness in the country, German companies cannot afford to lose access to the absorbent Chinese market.
Secondly, the shift in Washington and Donald Trump's return to the White home made the United States no longer seen as a full predictable and reliable ally. The threat of commercial wars and the force to choose 1 of the parties in the conflict with China prompt European leaders, including Merza, to search greater strategical autonomy and build a relation with Beijing on their own terms.
"In China for China": fresh paradigm of German investments
The key component of this fresh puzzle is the powerful trend “In China for China”. German companies, specified as BASF, Volkswagen or Siemens, no longer treat China as a inexpensive export factory. They invest immense resources – in 2025 it was over EUR 7 billion, the most in 4 years – in building advanced R & D centres and factories to meet the needs of the dynamically increasing Chinese interior market. They carry not only production, but full operating ecosystems, utilizing access to complete value chains, skilled labour and modern infrastructure. It is simply a strategical decision that is designed to make their Chinese operations independent of possible duties and geopolitical turmoil, but at the same time deepens the dependence of the German economy on China.
European cape to Beijing
Merz's visit is not an isolated case. Over the past 12 months, many European leaders have been on pilgrimage to Beijing, including French president Emmanuel Macron, UK Prime Minister Keir Starmer, Finnish Prime Minister Petteri Orpo, Irish Prime Minister Michael Martin, and Spanish King Philip. This increased diplomatic movement demonstrates a Europe-wide effort to "reset" and to find a fresh pragmatic model of relations with China in the face of a weakening transatlantic and economical necessity.
Will the visit cure German business?
The Chancellor's appointment program is tense. In Beijing, he will meet Prime Minister Li Qiang and president Xi Jinping. He will besides take part in the gathering of the German-Chinese economical Advisory Committee. Next, Hangzhou will be visited by Mercedes-Benz, Siemens Energy and Chinese robotic company Unitree. However, can this journey truly improve the condition of German business?
Experts are skeptical. Although dialog at the highest level is necessary, it will not solve fundamental problems specified as unfair competition from subsidised Chinese companies, barriers to marketplace access or strategical dependence on Chinese critical natural materials. Merz is faced with an highly hard task: he must defend the interests of German companies while addressing safety issues without provoking Beijing to retort. Its bargaining power is limited, although China besides needs access to the European market. The Chancellor's visit is, therefore, an effort to navigate in a fresh complicated reality and conflict to keep the competitiveness of the German economy, alternatively than an announcement of a breakthrough that magically heals all her ills.
Source:
- Bundesregierung: Bundeskanzler Merz reist nach China
- Politico: Merz heads to Beijing as Germany Inc. reels from ‘China shock’
- South China Morning Post: ‘China shock’ hangs over German leader Friedrich Merz’s first visit to Beijing
- Global Times: German Chancellor Merz to become latest European leader to visit China
- Reuters: German companies’ China investments drive to four-year advanced by US trade war wars
- Yahoo Finance: Exclusive-German companies’s investments in China boomed in 2025 on US trade war wars
- Deutsche Welle: Friedrich Merz is going to China. He has an crucial purpose.
- The Diplomat: What Will a Conservative CDU-led Coalition in Germany Mean for China?
Leszek B. Glass
Email: [email protected]
