Germany’s Merz Visits China Amid Calls for Fair Business Competition

German Chancellor Friedrich Merz faced calls from business leaders to insist on fair competition with China as he prepared to set off on Tuesday for talks with President Xi Jinping.

The Federation of German Industries (BDI) is calling on Merz to “clearly address issues such as overcapacity, distortions of competition and export controls on critical raw materials,” said board member Wolfgang Niedermark.

“German and European companies are not only competing with highly innovative Chinese firms, but are also part of a systematic competition shaped by states.”

Without a change of course on China’s part, new trade conflicts with the European Union are looming, warned Niedermark.

He said export controls on rare earths threaten Europe’s economic security, while non-transparent licensing procedures and selective market access further distort competition and impair investment decisions.

Merz is to depart on Tuesday evening for his first trip to China since becoming chancellor last year.

On Wednesday, he will meet with Xi in Beijing to discuss economic cooperation and security issues such as the war in Ukraine. Merz also intends to raise the issue of human rights and visit the Forbidden City in the Chinese capital.

The chancellor will be accompanied by a business delegation and will also visit the economic metropolis of Hangzhou.

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Germany’s export-led economy has become increasingly dependent on the massive Chinese market in recent years, but sales of German products such as cars have slowed amid rising domestic competition.

Nevertheless, China was Germany’s main trading partner in 2025, overtaking the United States as a result of President Donald Trump’s tariff policies.