
German Chancellor Friedrich Merz made his inaugural visit to China from February 24-26, 2026, seeking to rebalance a deteriorating trade relationship while Germany faces economic pressures and declining U.S. reliability. This timeline tracks how Germany navigated between concerns over an €89 billion trade deficit and the need to maintain ties with its largest trading partner amid global uncertainty.
10 events · 6 days · 22 source articles
Official statistics revealed China had reclaimed its position as Germany's most important trading partner with €251.8 billion in total trade, though Germany faced a record €89 billion trade deficit. This set the context for Merz's upcoming visit, highlighting both the importance and imbalance of the relationship. China had held this position from 2016-2023 before briefly losing it to the US in 2024.
Chancellor Merz confirmed he would visit China from February 24-27, with meetings scheduled with President Xi Jinping and Premier Li Qiang. His spokesman noted that China proposed the timing shortly after Lunar New Year, calling it "a good omen." Merz planned to bring a large business delegation and visit German companies operating in China including Mercedes-Benz and Siemens Energy.
Pre-visit analysis highlighted Germany's strategic dilemma: needing China economically while facing security concerns. At the Munich Security Conference, Merz had warned that China was "systematically exploiting the dependencies of others" while acknowledging the US was no longer a reliable partner. This positioned the visit as part of Germany's search for stability amid "the era of great powers."
German manufacturers reported rapid deterioration in their China position, with the Mechanical Engineering Industry Association noting positions were changing at "China speed." German industry faced pressure from Chinese overcapacity and competition, with many of Germany's "hidden champions" in trouble. Business groups urged Merz to send clear signals on competition and export controls.
On the first day of the visit, President Xi Jinping and Chancellor Merz met in Beijing and committed to advancing their "comprehensive strategic partnership to new levels." Xi emphasized that "the more turbulent and complex the world becomes, the more China and Germany need to strengthen strategic communication." The leaders also dined together, signaling the importance both sides placed on the relationship.
Merz announced that China would order up to 120 additional aircraft from European aviation giant Airbus, calling it a demonstration of "how worthwhile such trips can be." This major commercial agreement provided a tangible success from the visit and benefited European industry. Airbus operates assembly lines in Tianjin, China, that produce jets for Chinese carriers.
During meetings with Chinese leaders, Merz directly addressed the trade deficit, stating it was "not healthy" and had "quadrupled" in five years. He called for finding ways to reduce the imbalance, as German imports from China were more than double the value of exports. Merz also asked Beijing to use its influence with Moscow to help end the war in Ukraine.
As Merz toured China with business leaders, the Chinese yuan began appreciating against the euro, providing some welcome relief for the trade relationship. This currency movement could help address concerns about Chinese devaluation that had been contributing to Germany's competitive disadvantages.
On the second day of his visit, Merz traveled to Hangzhou, home to AI firm DeepSeek and e-commerce giant Alibaba. He toured Siemens Energy and Chinese robotics firm Unitree, accompanied by his business delegation seeking contracts. Premier Li Qiang had called for deeper technological cooperation between the countries, suggesting opportunities under China's latest five-year plan.
Chancellor Merz wrapped up his first China visit calling it "worthwhile" and praising the "good cooperation" with Beijing. Beyond the Airbus deal, the visit yielded a rare joint statement and multiple minor agreements. While raising concerns about trade imbalances and overcapacity, Merz signaled Germany's openness to rebalancing ties with its biggest trading partner amid unpredictability from the Trump administration.