Editorial | Merz’s Beijing trip shows that Germany realises it needs to work with China
Stable bilateral and China-EU relations can only be positive for global stability and sustainable development in an era of turbulence
Merz’s visit shows that despite trade tensions Germany realises it needs to work closely with Beijing. It is finding China – its biggest trading partner for all but one of the last 10 years – a more competitive market. German firms’ market shares and profits are under pressure. The 30-odd senior executives in Merz’s delegation would have been keenly aware of that.
China has emerged as the innovation lab for many German companies. One indication is that, after top-level talks in Beijing, Merz visited the Hangzhou technology hub, including a leading robotics company. The many visits to China by former German chancellor Angela Merkel featured auto and machinery assembly lines. The speed of innovation and the scale of the Chinese market provide an ideal testing ground for new products, which is key to maintaining a cutting edge and improving competitiveness. That is not to mention China’s important place in the global supply chain, particularly for rare earths.
At the same time, China needs German experience, technology and talent for advanced manufacturing projects. Germany is also a sophisticated market for Chinese products. Economically, the two countries have more to gain by working together.
Germany might also want greater autonomy from the EU to engage other big powers and advance its own interests. This shift towards realpolitik is an inevitable trend.