German Chancellor Friedrich Merz, a member of the CDU, urged a reduction of Germany’s widening trade deficit with China. Speaking on Wednesday during a business trip to Beijing, he said, “We want to continue the success story of cooperation between Germany and China”. He added that the relationship requires a regulated market entry, fair competition, transparency, reliability, and adherence to rules that both sides have set together.

Merz highlighted that, for about two years, a significant imbalance has existed in the trade balance. He cited China’s overcapacity as a key source of the deficit, which currently stands at more than €80 billion and has quadrupled since 2020. “This dynamic is unsustainable” he noted. “We are therefore addressing this issue and seeking ways to reduce the trade deficit to our detriment”.