Practical cooperation and outlook for China-Germany relations

German Chancellor Friedrich Merz's first visit to China since taking office marked an important step in bilateral relations.

The visit featured high-level meetings in Beijing and visits to enterprises and industry matchmaking events in Hangzhou. The outcomes provide a clearer framework for bilateral cooperation and contribute to the stability of China-EU relations. 

Strategic alignment and institutional support 

During the visit, Merz met with President Xi Jinping and held talks with Premier Li Qiang. The two sides issued a Joint Press Statement outlining key priorities: enhanced strategic communication, deeper practical cooperation and a commitment to multilateralism. Both sides acknowledged their shared responsibilities in supporting global stability and economic openness. 

At the institutional level, the two governments reaffirmed the role of existing dialogue platforms, including the China-Germany intergovernmental consultation mechanism, to ensure regular coordination across sectors.

On trade and economic issues, both sides agreed to address differences through dialogue and to promote long-term, balanced, reliable and sustainable economic relations.

During the visit, cooperation documents were signed in areas such as the green transition, customs, sports and media. Notably, China's National Development and Reform Commission and the German Federal Ministry for Economic Affairs and Energy agreed to continue their dialogue mechanism on climate change and green transition, placing cooperation in energy efficiency, the circular economy and low-carbon technologies on a more institutional footing. 

Practical cooperation and industrial collaboration

Practical cooperation was at the core of the visit. Merz led a delegation of executives from around 30 German companies across the automotive, chemical, biopharmaceutical, intelligent manufacturing and circular economy sectors. Business exchanges in Beijing and site visits in east China's Hangzhou emphasized a move from a model centered on "German technology plus the Chinese market" toward two-way technology complementarity and joint value creation. 

Intelligent manufacturing featured prominently. The visit to Unitree Robotics highlighted opportunities in robotics and automation, where China's advances in AI-enabled applications can complement Germany's strengths in precision manufacturing. Earlier investments by Neura Robotics in Hangzhou indicate growing momentum in bilateral collaboration on robotics, industrial automation and applied AI. 

The automotive sector remains a pillar of bilateral cooperation and is undergoing deeper integration amid electrification and digitalization. Volkswagen has continued to expand its new energy vehicle (NEV) and R&D layout in China. Bosch continues to invest in NEV components and automated driving R&D, while Schaeffler is expanding its long-term operations in the country. Meanwhile, Chinese firms are increasing their presence in Europe: CATL operates a battery plant in Germany and is advancing capacity in Hungary; Chery is pursuing localized production in Europe. These developments point to a more integrated supply chain featuring two-way investment and technological exchange. 

The green transition and climate cooperation are emerging growth areas. The continuation of the climate and green transition dialogue mechanism supports cooperation in renewable energy, energy efficiency and the circular economy, aligned with the goals of the Paris Agreement. Policy coordination, joint R&D and project-based cooperation aim to accelerate the industrial deployment of low-carbon technologies. 

Both sides also discussed aligning China's upcoming development plans with Germany's industrial and innovation strategies to expand cooperation in biopharmaceuticals, high-end equipment and the digital economy. Business forums involving more than 60 Chinese and German executives signaled interest in expanding investment and partnerships within China's market. 

From complementarity to parallel collaboration 

Merz's visit reflects a shift in the cooperation model. Historically, cooperation emphasized German technology in exchange for Chinese market access. With China's advances in robotics, electric vehicles and photovoltaics, cooperation is increasingly based on parallel strengths and co-development.

Hangzhou's transition toward advanced manufacturing and hard technology illustrates how Chinese innovation hubs can integrate with Germany's Industry 4.0 transformation agenda. 

Market data underlines continued economic interdependence. China remained Germany's largest trading partner by value in 2025, with bilateral trade reaching €251.8 billion (nearly $297 billion), and German FDI in China rising markedly year on year. Despite short-term fluctuations in automotive exports, German companies continue to expand local R&D and manufacturing to remain competitive in China's market and supply chains.

Implications for China–EU relations and global governance

China-Germany relations play a stabilizing role in China-EU ties. The visit sent a clear signal in favor of openness, opposition to protectionism and a preference for dialogue-based problem-solving. Cooperation in the green transition, intelligent manufacturing, and trade and investment provides practical templates for broader China-EU cooperation. 

In a context of slower global growth and geopolitical tensions, China and Germany reaffirmed their support for free trade and multilateral frameworks, coordination on climate action, and cooperation on global development and public health. These areas offer concrete channels for joint contributions to global governance and supply chain stability. 

Outlook

Merz's visit produced actionable outcomes and clearer priorities. Going forward, sustained progress will depend on three factors: maintaining strategic trust, expanding practical cooperation with measurable projects and strengthening institutional mechanisms to manage differences.

Priority areas include intelligent manufacturing, the green transition, biopharmaceuticals and the digital economy; improving coordination on standards and talent mobility; and keeping dialogue channels open on trade and regulatory issues. 

By anchoring cooperation in concrete projects and regularized mechanisms, China and Germany can stabilize their relationship and support constructive China-EU engagement. The shift toward two-way collaboration reflects changing industrial realities and offers a practical pathway for mutually beneficial cooperation in an evolving global economy.