Highlights

• German Chancellor Friedrich Merz concluded his first China visit with major economic wins, including China's commitment to order up to 120 Airbus aircraft worth billions, while visiting key tech and industrial sites in Beijing and Hangzhou.
• The trip highlighted Germany's continued deep economic integration with its largest trading partner, with over ten commercial agreements signed across automotive, energy, and financial sectors despite intensifying market competition.
• Merz raised critical friction points, including Chinese industrial subsidies, market access restrictions, and Germany's dependency on Chinese rare earth materials, illustrating Berlin's strategy of maintaining engagement while managing geopolitical risks.

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German Chancellor Friedrich Merz (opens in a new tab) wrapped up his first official visit to China with a notably constructive assessment, describing the trip as productive and reaffirming that China remains “indispensable” to Germany’s economic interests. According to reporting from Chinese and European outlets, the visit yielded expanded cooperation commitments — most prominently China’s stated intention to order up to 120 Airbus aircraft, a potential multibillion-euro boost for Europe’s aerospace sector if finalized.

Deal-Making Desires

The trip was heavily economic in tone. InBeijing and Hangzhou, Merz visited major industrial and technological sites, signaling Germany’s continued engagement with China’s innovation ecosystem. In Hangzhou — one of China’s primary tech hubs — he toured Unitree Robotics (opens in a new tab), a fast-growing robotics manufacturer that reportedly surpassed €100 million in revenue in 2024. Demonstrations included advanced humanoid robotics systems, underscoring China’s accelerating progress in applied AI and intelligent manufacturing.

Merz also visited a Mercedes-Benz production facility in Beijing (opens in a new tab) and engaged with Siemens Energy operations (opens in a new tab), reinforcing Germany’s deep industrial integration withinChina.

China’s Ministry of Commerce stated that more than ten commercial agreements were signed across the automotive, energy, and financial services sectors. Chinese analysts characterized the visit as “mutually beneficial,” with Germany securing commercial outcomes while Beijing strengthened strategic ties with Europe’s largest economy.

Tensions to Discuss Including Rare Earth Dependency

Importantly, Merz also raised areas of friction. German concerns reportedly included Chinese industrial subsidies, exchange-rate transparency, market-access restrictions, and supply-chain vulnerabilities — particularly Germany’s reliance on Chinese rare-earth materials. A joint press statement referenced European unease over what Beijing terms the “over-securitization” of trade and export controls on high-tech goods, reflecting ongoing tensions over technologyrestrictions and economic de-risking policies.

 Germany’s Largest Trading Partner

For U.S. and Western stakeholders, the visit illustrates Berlin’s calibrated strategy: maintaining economic engagement with China while managing competitive and geopolitical risks. China has been Germany’s largest trading partner in nine of the past ten years, even as German automakers and manufacturers face intensifying competition in the Chinese market.

If confirmed, the Airbus order would demonstrate Beijing’s continued use of large commercial agreements to anchor diplomatic relationships in Europe. More broadly, the trip suggests that despite transatlantic coordination on supply chain security and strategic autonomy, Germany is not pursuing decoupling from China’s market or technology base.

Disclaimer: This summary is based primarily on reporting from Chinese state-affiliated media and related outlets. Commercial agreements and strategic interpretations have not been independently verified and should be confirmed through German government releases or third-party reporting.