China and Germany aim to strengthen their economic partnership, Chancellor of Germany, Christian Merz and Li Qiang said during meetings in Beijing on Wednesday (Feb 25). Merz’s visit focuses on resetting ties amid a growing trade imbalance between the two countries. Merz emphasized Germany’s commitment to deepening economic exchanges with China, its largest trading partner last year, while calling for fair co-operation and open dialogue. “We have specific concerns about our partnership that we aim to address and make fair,” he said, acknowledging the challenges of an increasingly uneven economic relationship.

Li stressed that China and Germany, as two major global economies, should enhance confidence in cooperation, defend multilateralism and free trade, and work toward a fairer global governance system, implicitly referencing past US trade disruptions. China is promoting itself as a reliable partner compared with the United States, as Europe grapples with supply chain vulnerabilities and concerns over dependence on China. Europe’s Trade Commissioner Maroš Šefčovič highlighted China’s growing dominance in manufacturing, widening trade imbalances, and the shrinking presence of EU firms in the Chinese market.

Merz’s visit marks his first to China and follows recent engagements by other European leaders seeking to recalibrate ties, including Britain’s Starmer and Canada’s Carney. Accompanied by a delegation of 30 companies—including Volkswagen and BMW—Merz is addressing the pressures German manufacturers face from Chinese competition, which has fueled calls for protective measures.

Analysts note that China’s slowing economy, overcapacity in manufacturing, and reduced consumer demand are reshaping its market, prompting domestic firms to look abroad. Chinese state media emphasized the potential for EU-China cooperation to stabilize global trade, with Xinhua noting innovation gains in China benefiting German companies and the Global Times stressing that the size of China’s market outweighs competitive concerns. The media highlighted that political rhetoric about China being a “systemic rival” has sometimes complicated policy, but German business interests show strong enthusiasm for engagement.