Merz's visit to set a positive tone for future Sino-German relations

Editor's note: Azhar Azam, a special commentator for CGTN, works for a private organization as a market and business analyst. He writes on geopolitical affairs and regional conflicts. The article reflects the author's opinions and not necessarily those of CGTN.

German Chancellor Friedrich Merz said he would seek "strategic partnerships" and pursue future cooperation with Beijing during his China visit, which begins on Wednesday. Against the backdrop of rising protectionism, his comments reflect Berlin's intent to reinforce pragmatic collaboration in trade, investment and manufacturing with Beijing through renewed high-level exchanges and intensified business engagement.

Asked whether concrete outcomes were expected, German Foreign Minister Johann Wadephul earlier confirmed, "Yes, they can, and in all likelihood they will." He noted that Beijing had approved the export applications for some German companies, reaffirming China as one of Germany's most important trading partner.

Merz is bringing an unusually large business delegation including chief executives from leading firms such as Bayer, Volkswagen and Siemens. With around 30 senior corporate leaders accompanying him and with interest far exceeding available places, the trip has attracted significant attention from not only China and Germany, but also the international community.

Since the establishment of diplomatic ties in 1972, Sino-German relations have navigated periods of tensions that have evolved into a robust economic relationship. Despite differences, both countries share interests in boosting trade and investment, supporting the international economy and addressing global challenges such as climate change and public health.

Among Berlin's major demands from Beijing are increased market access for its companies and products. China has already signaled receptiveness to deeper commercial engagement. At a roundtable for German-invested enterprises on February 12, Chinese officials encouraged German firms to invest in innovation, green development and the digital sector, pledging a fair and stable business environment.

For Germany, China remains a vital market and an attractive investment destination. German corporate investment in China reached a four-year high in 2025, and firms themselves credit China-based technologies and products with strengthening their global presence and competitiveness. This demonstrates commitment to elevate business ties and sustain advanced-manufacturing linkages.

Economic fundamentals highlight the depth of the relationship. China was Germany's largest trading partner from 2016 to 2023. After the US briefly overtook it in 2024, Beijing regained the top position in 2025, with bilateral trade reaching 251.8 billion euros (around $296.66 billion), according to the German Federal Statistical Office (Destatis).

Some frame Germany's economic ties with China as a source of dependence; they are reciprocal and historically rooted. Decades of investment, trade and technological cooperation have produced structurally embedded interlinkages that benefit both sides. The priority shouldn't be asymmetric dependence but mutual interdependence.

Merz's outreach to China carries wider geopolitical significance. Amid intensifying global trade frictions and attempts to undermine a coordinated response to climate change, disease surveillance and pandemic preparedness, Berlin's stance on tariffs, support for multilateral institutions and emphasis on free trade align with Beijing's.

At the Munich Security Conference, the German Chancellor himself warned against unilateralism. "We do not believe in tariffs and protectionism, but in free trade. We stand by climate agreements and the World Health Organization." As protectionist impulses and efforts to weaken institutions threaten global cohesion, closer China-Germany coordination becomes crucial to safeguard multilateralism, open trade and collective action on climate and global health.

As Wadephul, who recently met with his Chinese and French counterparts Wang Yi and Jean-Noel Barrot, stressed: Germany and France should increase communication with China to dispel misunderstandings and consolidate mutual trust. Such engagements could advance strategic dialogue, strengthen the UN-centered international system, improve global governance and support each other's development.

At the European Industry Summit, Merz hailed China's industrial speed and implementation capacity in rolling out large renewable-energy projects as a benchmark for Europe. By partnering with Beijing, Berlin and Brussels can accelerate their green transition, scale innovation and boost competitiveness – three pillars of Europe's industrial renewal amid a protectionist, anti-green administration in Washington.

Building on recent diplomatic exchanges and strong complementarities between Europe's largest industrial economy and the world's leading manufacturing and innovation hub, Merz's China visit is expected to yield concrete results. Possible outcomes include a more predictable market environment, collaboration in innovation, green industries, the digital sector, advanced manufacturing, automotive and chemicals. 

Germany's long-standing engagement with China provides a solid foundation. For two decades, German firms have thrived on China's demand – particularly in the automotive, machinery and chemical industries – creating a win-win scenario that allowed them to weather shocks better than their peers.

The momentum hasn't faded. Still, roughly all German companies in China are optimistic about their future outlook, with half intending to increase investment in metal products, automotive, electronic, chemicals and logistics.

As US tariffs weigh on German firms and pivot toward the Chinese market, Beijing is extending robust policy support. During the 2026-2030 Five-Year Plan period, China aims to expand high-quality opening-up and development, generating significant opportunities for German exporters. Germany's parallel efforts to ensure an equitable business environment for Chinese companies would promise a more resilient Beijing-Berlin economic and trade partnership.

Looking ahead, this leadership-level engagement is poised to set a constructive tone for the future of Beijing-Berlin relations. The world's second and third-largest economies share strong economic and political interconnections and a common stake in global stability.

When combined with China's high-quality demand, technological innovation and industrial capacity, Germany's drive for trade expansion, competitiveness and resilient supply chains could help revitalize its economy and sustain a mutually beneficial partnership for decades to come.

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