Opinion | Why Germany’s Merz needs to hedge his bets with China and US
Amid deteriorating transatlantic relations, Germany’s economic future depends on the ability to chart an independent course between Washington and Beijing
Rather than choosing between confrontation and capitulation, Merz is likely to pursue a third path – one that recalibrates Sino-German ties to safeguard national security while ensuring Germany’s industry remains competitive in an era of global uncertainty.
Merz’s political philosophy is rooted in economic pragmatism. His background, spanning corporate law, boardroom negotiations and business management, has shaped his belief that Germany’s global economic position is best secured through a free-market approach. His policy agenda reflects this view: lower taxes, fewer regulations and pro-business reforms designed to make German industry more competitive on the global stage.
It explains why, despite his campaign rhetoric, Merz’s actual approach to China is likely to be far more measured. While he has publicly warned German businesses against over-reliance on China and described Beijing as part of an “axis of autocracies”, these statements should be understood within the broader context of election posturing.
His record suggests that his focus will be on mitigating risks without severing economic ties: an approach that is supposed to ensure German businesses can compete effectively without exposing themselves to unnecessary vulnerabilities.