German Chancellor Friedrich Merz has concluded his inaugural visit to China, describing his talks with President Xi Jinping and other Chinese officials as constructive, while acknowledging ongoing economic challenges.
Speaking in Hangzhou, Merz highlighted concerns over Chinese industrial overcapacity, noting that some production capacities now exceed market demand and pose competitive challenges for Europe.
“Above all, there are issues relating to competition. China has high capacities, some of which are now also posing a problem for Europe because they far exceed market demand,” Merz said.
He indicated that detailed follow-up discussions would take place upon his return to Germany. In particular, he plans to instruct Economy Minister Katherina Reiche to travel to China to continue negotiations and monitor developments.
Officials described the talks as part of Germany’s effort to balance trade opportunities with fair competition and market stability, while maintaining strong economic ties with China.
This first visit underscores Germany’s strategic focus on managing structural imbalances in its trade relationship with Beijing.
