Editorial | Germany’s ties with China sacrosanct, no matter the leaders

After German voters sent the opposition conservatives led by Friedrich Merz to victory in their national election on Sunday, conventional wisdom would suggest that China brace for fraught relations with the largest and most populous economy in Europe. Merz, set to become the next chancellor but still facing coalition talks, had regularly labelled China an increasing threat to German security and advocated for better coordination with European allies to counter Beijing. But recent pressures on Berlin from abroad and at home may require pragmatism that could limit fallout in relations with China.

Foremost, US President Donald Trump’s undermining of long-standing security arrangements with Europe and his sudden warming in relations with Russia – at the expense of Ukraine – have brought tensions to the Atlantic alliance. Those concerns came through in Merz’s forthright comments after his election victory, in which he criticised comments from Washington during the campaign, comparing them to hostile interventions from Russia.

“So we are under such massive pressure from two sides that my absolute priority now is to achieve unity in Europe. It is possible to create unity in Europe,” he said. As a major power on the continent, his nation has a significant role to play in building a stronger Europe that is less reliant on the United States. This will take time and resources, and may prove challenging for Germany with its economy faltering and voters split over immigration and other issues at home. Talks to assemble a coalition government may take months. He aims to do so without the far-right Alternative for Germany, which came in second.

With such pressures, it would seem Merz can ill-afford to stray far from the pragmatic approach towards China pursued by his party’s long-time former chancellor, Angela Merkel, and also by his rival predecessor, caretaker Chancellor Olaf Scholz. China on Monday said it was eager to consolidate and develop bilateral ties after Merz’s win.

That Germany and China’s economic fates are intertwined has not changed with the election. After the US, China is Germany’s second-biggest trading partner, while Berlin is Beijing’s biggest partner in Europe. Together they boast some US$200 billion in annual bilateral trade. Germany faces other sobering pressures including a threat of 25 per cent tariffs on automobiles by Trump.

All this would suggest Merz needs to maintain a smart approach to navigating ties with both the US and China. Germany and China have successfully weathered unsettling times by keeping the lines of commerce and communication open while acknowledging that differences remain in relations, like the approach to Ukraine and alleged Chinese “overcapacity”. Maintaining this wise and practical approach can be of mutual benefit to both nations.