
In late February 2026, German Chancellor Friedrich Merz made his inaugural official visit to China amid deteriorating US-German relations and mounting economic pressures. The trip represented a delicate diplomatic balancing act as Germany sought to strengthen ties with its largest trading partner while addressing a massive trade deficit and concerns about Chinese industrial overcapacity. This timeline tracks the key developments from pre-trip preparations through the visit's conclusion.
10 events · 4 days · 21 source articles
As Chancellor Merz prepared for his belated inaugural visit to China, German manufacturers faced a crisis dubbed the 'China shock.' Germany's Mechanical Engineering Industry Association noted that industry positions toward China were changing at 'China speed' due to competitive pressures. Merz confronted an export model under strain and acknowledged the US was no longer a reliable partner, making the China relationship increasingly critical despite previous warnings about economic dependencies.
President Xi Jinping and Chancellor Merz met in Beijing, both pledging to elevate bilateral relations amid global uncertainties. Xi stated he was 'willing to work together with the chancellor to continuously advance the comprehensive strategic partnership between China and Germany to new levels.' Merz echoed the call for stronger ties, saying 'the more turbulent and complex the world becomes, the more China and Germany need to strengthen strategic communication.'
During the visit, Merz announced that China would order up to 120 additional aircraft from European aviation giant Airbus, calling it evidence of 'how worthwhile such trips can be.' The announcement represented a significant concrete outcome from the diplomatic engagement and a boost for European aerospace manufacturing.
Despite warm diplomatic tones, Merz publicly addressed Germany's yawning trade deficit with China, noting that imports from China were more than double the value of German exports. He stated the trade imbalance had 'quadrupled' in five years and was 'not healthy,' emphasizing his desire to find ways to reduce the deficit. German business groups had urged Merz to send clear signals on competition and export controls.
As Merz toured China with business leaders, the Chinese yuan began appreciating against the euro, providing a welcome development for German-Chinese trade relations. This shift in currency dynamics offered some relief amid broader concerns about the bilateral economic relationship.
Chinese Premier Li Qiang highlighted opportunities for technological cooperation under China's five-year plan, telling a symposium with Merz and over 60 business representatives that China supports 'bilateral flows of innovation resources' and deeper joint technology development. Li's emphasis on tech cooperation represented a potential bridge to ease tensions over trade disputes and geopolitical issues.
Merz traveled to Hangzhou, home to AI firm DeepSeek and e-commerce giant Alibaba, flanked by business leaders seeking contracts. He toured leading companies including Siemens Energy and Unitree, a Chinese humanoid robotics firm. The visit to China's tech hub signaled German interest in engaging with China's emerging technology sectors despite broader competitive concerns.
As his visit concluded, Merz characterized the trip as 'worthwhile' and hailed the 'good cooperation' with Beijing. He emphasized that Germany and China had potential to unlock significant opportunities for cooperation. The visit produced a rare joint statement, minor deals, and the Airbus purchase promise, though major structural issues like the €87 billion trade deficit remained unresolved.
In Hangzhou, Merz had lunch and took photos with leading tech entrepreneurs including Alibaba CEO Eddie Wu Yongming and Unitree founder Wang Xingxing. He met representatives from 10 companies specializing in AI, humanoid robots, and electric vehicles. The engagement with China's tech vanguard signaled growing international recognition of China's technological advances and German interest in maintaining business ties.
Post-visit analysis indicated Merz had carefully balanced competing interests during his trip. He expanded economic ties while addressing concerns over trade imbalances and overcapacity. Notably, he avoided calling China a 'systemic rival'—a term used by predecessor Scholz that irritated Beijing. However, massive structural challenges including the trade deficit and Chinese overcapacity remained unresolved. Western leaders' pilgrimage to Beijing was attributed partly to Trump's tariff policies pushing them closer to China.