Analysis: Germany Returns to Pragmatism on China, Even as Derisking Looms

German Chancellor Friedrich Merz arrived in Beijing this week for his first visit as chancellor, attempting to strike a delicate balance between re-engaging Germany’s largest trading partner and addressing a ballooning trade deficit.

Accompanied by executives from roughly 30 leading German companies — spanning automotive, chemicals, pharmaceuticals and machinery — Merz met with President Xi Jinping and Premier Li Qiang. The visit, which concluded Thursday, marked a return to the more pragmatic, business-first diplomacy of the Merkel era, yet it unfolded against a backdrop of intensifying economic rivalry and European threats of protectionism.