Editor's note: Freddie Reidy, a special commentator for CGTN, is a freelance writer based in London, specializing in international politics. The article reflects the author's opinions and not necessarily the views of CGTN.

Eight years after his first state visit, German President Frank-Walter Steinmeier is visiting China again amid a dramatically changed global landscape and greater challenges.

2018 was no stranger to its own challenges: Prior to the German president's first state visit talks between China and the US had just broken down with Washington demanding a $200 billion trade deficit cut. Fast forward to 2026 and politicians and business leaders may look back through rose-tinted glasses at an era that has long since passed.

In the intervening years, conflicts have erupted in Europe and the Middle East and the world was gripped by the COVID-19 pandemic. Beyond the humanitarian impact, these dramatic events have presented formidable structural obstacles which the leaders of the world's second- and third- largest economies will seek to address together this week.

Just as the global picture has changed, so too has the economic relationship between China and Germany evolved. Market reciprocity is greater than it was previously, and advanced engineering and manufacturing capabilities remain central. Yet the bedrock of the economic relationship has moved beyond markets and manufacturing to partnerships and, in some cases, competition.

Here, we see partnerships in the technologies of the future, such as test projects for industrial artificial intelligence (AI) applications from Siemens in China's advanced industrial sector, and in Germany, strong growth in Chinese car sales.

In the last two years, Chinese manufacturers have steadily expanded their presence in the German automotive market. The share of new vehicle registrations rose from 1.7% in 2024 to 2.4% in 2025, an increase of more than 40%. Early 2026 data suggest that the trend is continuing, with Chinese brands accounting for 3.1% of new registrations during the first quarter.

Market access has been a global challenge since 2018, as protectionism has increased across the US and on to Europe. Finance ministers have also repeatedly been forced into trading short-term gains in domestic employment or have given way to cost of living pressures to push back ambitious net zero goals. Doubts over true environmental benefits have also piled on the pressure.

In this regard, Germany and China have a positive precedent. In 2023, the two countries established a dialogue and cooperation mechanism on climate change and green transition. The memorandum behind it laid out eight fields of action, including industrial decarbonization, the expansion of renewable energy, the circular economy and sustainable financing.

The state visit recognizes the two countries' continued desire for engagement and their shared interests. The rapid rise of China's advanced manufacturing may intensify competition with German manufacturers. However, competition can also spur innovation and benefit consumers, a view that is gaining recognition in Germany.

Engaging in this dialogue, though, is vital for the future of integrated economies and multilateralism. An end to cheap hydrocarbon-based energy, the dawn of AI and resource scarcity pose fundamental threats to the underpinning of the socio-economic agenda. With the US becoming ever more protectionist at home, and ever more interventionalist abroad, the need for new and renewed international agreements is becoming ever more essential.

In 2018, as the US embarked on a trade war with China, it was hard to imagine that Washington would soon train its sights on Canada, one of its largest economic partners. Given Germany's pre-eminence as the EU's largest economy, it would seem that discussions on avoiding market protectionism may be a priority this week.

A settlement on electric vehicle tariffs would be one such example where the possibility of an agreement over minimum pricing policies on certain goods could be a means of breaking the deadlock.

The European Trade Commissioner Maros Sefcovic last month attempted to inject some momentum ahead of talks over the issue and those in the periphery: "What we definitely need to bring back are clear pointers, the sense of travel where we are going, to have a couple of pilot ‌schemes where I can prove for a certain group of products that this consultation, this cooperation works and that we believe we can develop the mechanics further to address this issue."

Old hands will tell you that untangling a trade dispute with the European Union usually starts with winning over Berlin, so positive talks in China this week would be a positive step.

For Germany too, the economic links with China run deep and are mutually beneficial. Both leaders could draw lessons from past efforts, recognizing that consensus can be built piece by piece through practical cooperation rather than wholesale ideological alignment.

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