Merz warns of unhealthy China trade imbalance on first Beijing visit
Feb 27th 2026
On his first official visit to Beijing Chancellor Friedrich Merz warned that a widening trade gap with China is damaging to Germany, pressed Beijing to help end the Ukraine war and sought ways to reduce the deficit while securing business deals.
- Chancellor Friedrich Merz said the bilateral trade deficit with China is "not healthy" and must be reduced after it reportedly quadrupled in five years.
- In 2025 Germany imported €170.6 billion in goods from China while exporting €81.3 billion back to China.
- German industry groups and analysts point to Chinese subsidies, alleged currency undervaluation and overcapacity as key drivers of competitive distortions hitting car, machinery and chemical sectors.
- Merz urged Beijing to use its influence with Moscow to help end the war in Ukraine during the talks.
- China agreed to buy up to 120 Airbus aircraft, a major commercial win for Europe amid tense trade discussions.
- The EU has opened multiple anti-dumping cases against China and is considering measures to boost domestic production and reduce strategic dependencies.