Economist Michael Hüther has urged German Chancellor Friedrich Merz (CDU) to make clear statements during his talks with Chinese leaders. “Merz should convey that unfair trade practices will not stand for long, but will provoke counter‑measures. We must make that very clear to the Chinese” the director of the German Institute for Economic Research (IW) told the “Neue Osnabrücker Zeitung” in its Wednesday edition.
Merz will first meet Chinese Premier Li Qiang on Wednesday, before a one‑on‑one audience with President Xi Jinping.
Hüther believes that “Mr Merz can conduct a confident, level‑playing conversation in Beijing”. He added that Germany and China are the two biggest beneficiaries of the globalization wave since the 1980s and 1990s, but both countries now face significant structural challenges. “We can tackle them better together”. On the Chinese side, the IW director highlighted issues such as the severe aging of society, misallocation of capital, problems in the real‑estate sector, and an over‑production crisis-particularly regarding electric cars.
At the same time, Hüther countered growing fears that China would become technologically dependent on Europe. “Can a country have comparative advantages in all products, as economists often ask? That is essentially impossible” he said. The concern would only be justified if Germany did not further intensify its research activities. “What matters is that we learn to add value from university research, for example through spin‑offs. If we become better at this, which we can, we need not fear being surpassed by China”. This could be advantageous for Germany and Europe, especially if academic freedom in the United States is under threat.