Despite differences, Xi and Merz move to deepen China-Germany ties in a time of global turbulence

BEIJING — Despite sharp differences over key geopolitical issues, notably Russia’s war in Ukraine, Chinese President Xi Jinping and German Chancellor Friedrich Merz pledged Wednesday to strengthen bilateral ties as global political and economic uncertainties intensify.

Meeting at the Diaoyutai state guesthouse in Beijing, Xi underscored the need for closer coordination between the world’s second- and third-largest economies.

“The more turbulent and complex the world becomes, the more China and Germany should strengthen strategic communication and enhance strategic mutual trust,” Xi said, noting that the year had not begun peacefully and reiterating his view that the world is undergoing its most profound changes since the end of World War II.

Merz responded by acknowledging existing challenges but emphasized cooperation.

“Although we have issues and challenges to discuss, we should emphasize the things we have in common and face the challenges we stand before together,” he said. In a separate meeting with Premier Li Qiang, Merz called for collaboration “wherever possible” and expressed hope of building a strong personal working relationship with China’s top leadership.

Ukraine War and Europe’s Expectations

A key point of divergence remains Russia’s four-year war in Ukraine. European governments have grown increasingly frustrated with Beijing’s stance, arguing that China has not exerted sufficient pressure on Moscow to end the conflict. Beijing has maintained trade and diplomatic ties with Russia, insisting its position is impartial.

Ahead of his trip, Merz said he would press China to help bring the war to an end, stressing that “the big global political problems can no longer be tackled today without involving Beijing.” He added that cooperation is essential in resolving crises, including in Ukraine, noting that “Beijing’s voice is heard, including in Moscow.”

China’s Foreign Ministry spokesperson Mao Ning earlier expressed hope that “all parties will seize the opportunity to reach a comprehensive, lasting and binding peace agreement.”

Trade Imbalances and Economic Pressures

The visit comes as both nations navigate shifting global trade dynamics, particularly policies introduced by U.S. President Donald Trump. Just hours before Merz met Chinese leaders, Trump praised his import tariffs in a State of the Union address, reinforcing Washington’s assertive trade stance.

China has sought to rally support from major economies to counter U.S. tariffs and broader challenges to the post-World War II international order.

Merz, who took office last May, has advocated for a stronger and more self-reliant Europe, both economically and militarily. Before departing for Beijing, he signaled he would push for fairer market access for German companies operating in China.

Trade data highlights the imbalance: Germany’s imports from China rose 8.8% to 170.6 billion euros last year, while exports to China fell 9.7% to 81.3 billion euros. A surge of Chinese exports has raised concerns in Europe over factory job losses and industrial overcapacity, particularly in electric vehicles and solar panels.

European leaders have urged Chinese firms to invest directly in Europe by building factories, while also calling on Beijing to reduce excess manufacturing capacity and remove barriers faced by foreign companies.

China’s state-run Xinhua News Agency said in a commentary that both countries share responsibility as major economies to oppose protectionism and economic coercion.

A Broader European Context

Merz framed Germany’s China policy within a broader European strategy, noting his visit follows recent trips by French President Emmanuel Macron and British Prime Minister Keir Starmer, and precedes a planned visit to Washington.

“Our message from a European point of view is the same: We want a balanced, reliable, regulated and fair partnership with China,” Merz said. “This is our offer. At the same time, it is what we also hope for and expect from the Chinese side.”

After concluding talks in Beijing, Merz is scheduled to travel to Hangzhou, a high-tech hub, where he will visit Unitree Robotics, a leading developer of humanoid robots, before returning to Europe.

His China trip comes shortly before his third visit to Washington as chancellor, underscoring Germany’s effort to balance relations between Beijing and its longstanding transatlantic ally during a period of mounting global uncertainty.