Analysis: Germany Returns to Pragmatism on China, Even as Derisking Looms
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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.
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- German Chancellor Friedrich Merz visited Beijing, meeting top Chinese leaders to address a €90 billion trade deficit and advocate for fairer trade terms.
- The EU's trade deficit with China is projected to reach €359.3 billion in 2025, fueling internal EU debates over possible tariffs, with Germany cautious due to deep economic ties.
- Merz acknowledged rising Chinese innovation and signaled continued “de-risking,” balancing pragmatism with economic interests.
- Unitree Robotics
- Unitree Robotics (宇树科技) is a Chinese technology company that has become a hub for Chinese tech, particularly in the robotics sector. German Chancellor Friedrich Merz visited their facilities in Hangzhou, a move signaling a shift in perception regarding Chinese innovation. This visit highlights a growing recognition of China's advancements in fields traditionally dominated by countries like Germany.
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