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Merz looks East: Strategic awakening across 7,500 kilometers

By Cao Han | chinadaily.com.cn | Updated: 2026-03-12 10:40
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German Chancellor Friedrich Merz visits the company Unitree Robotics in Hangzhou, Zhejiang province, China, and is given a tour of the showrooms by founder Wang Xingxing (L), on February 26, 2026. [Photo/Agencies]

A week before his departure for an official visit to China, German Chancellor Friedrich Merz invited several China experts to dinner at the Chancellery. Der Spiegel reported that the chancellor, famous for his impatience, spent over two hours asking questions and taking careful notes. Attendees described him as "listening more attentively" than his predecessor Olaf Scholz.

This visit was unlike any other. Accompanying him was the most high-profile business delegation since the Merkel era — comprising roughly 30 top executives from Germany's leading corporations. They flew 7,500 kilometers to Beijing and Hangzhou. During his visit, Merz posted several times on social media in Chinese. After touring the Forbidden City, he wrote in the guestbook: "May we gallop ahead with the spirit of the Horse and the Dragon in this Year of the Horse. May this year become a year of cooperation and development between Germany and China."

Why? Germany needed to figure out one thing: in a world where allies cannot always be relied upon, who can you sit down and have a serious talk with?

Late, but not absent

Merz is the first foreign leader to visit China in the Year of the Horse. But in the eyes of German public, the trip came "rather late" — British Prime Minister Starmer, French President Macron, and Canadian Prime Minister Carney had all already visited Beijing before him.

Merz himself stated the subtext: "We all got here before Trump."

This is no coincidence. According to the latest data from the Federal Statistical Office, two-way trade between Germany and China reached 251.8 billion euros in 2025, making China Germany's largest trading partner once again, surpassing the US. They talk about "de-risking", but their actions speak louder.

Two countries issued a joint statement, reaffirming that mutual respect, mutual benefit and win-win results, continued open dialogue, and cooperation in addressing common challenges are the fundamental principles for developing China-Germany relations. This isn't diplomatic fluff. Germany is putting it in writing: dialogue is the way to bridge differences.

A partner who is willing to sit down at the table and get things done is more reliable than an ally who only makes empty promises.

The weight of the ballast

Among the executives accompanying Merz were the heads of Volkswagen, BMW, and Mercedes-Benz. But this time, they didn't come just to sell cars — they came to "learn the craft."

Volkswagen has established its first research and development center outside Germany in Hefei, equipping it with full vehicle platform development capabilities and cutting R&D time by 30 percent. Mercedes-Benz invested in Qianli Technology to accelerate its local research of intelligent driving. Meanwhile, BMW signed a new agreement with CATL to pilot cross-border data transfer for battery passports.

BMW Chairman Oliver Zipse commented: Companies that ignore the vast market and immense innovative potential of China will miss significant opportunities for global growth and business success.

J?rg Wuttke, former president of the EU Chamber of Commerce in China, offered a vivid metaphor: China has become a gym for industrialists. The skills German companies hone here can be applied globally. The well-known German China expert Eberhard Sandschneider noted that Germans are proud of building cars, not "mobile phones on wheels" — yet that is exactly what the Chinese are building. China has now become a technological leader, and keeping up is no easy task.

German Economic Institute (IW) data shows that German net new direct investment in China exceeded 7 billion euros in 2025, a 55 percent increase from 2024, the highest since 2021. A survey by the German Chamber of Commerce in China reveals that 93 percent of German companies in China have no plans to leave, 53 percent plan to increase investment in the next two years, and 56 percent are considering deeper cooperation with Chinese partners.

Why are China-Germany economic relations the "ballast"? Not because of nostalgia, but because China is no longer the "student". Chinese Ministry of Commerce data shows that annual trade between two countries has consistently exceeded 200 billion US dollars in recent years, and two-way investment stock has surpassed 65 billion US dollars, with each figure accounting for nearly one-quarter of China's total engagement with the European Union.

During the visit, companies from both sides signed over ten commercial agreements covering sectors such as automobiles, machinery, energy, logistics, and finance. The two sides also signed the joint statement on the continuation of a bilateral dialogue on green transformation and climate change, making green cooperation one of the priorities for the next phase of bilateral cooperation. This wasn't a "tick-the-box" visit — it was a real investment in the future.

Over more than half a century, a web of mutually beneficial cooperation has been woven — one that no one can tear apart.

A new normal, a new set of coordinates

There's another passage in the joint statement worth reading carefully, saying that both sides expressed willingness to properly address each other's concerns through candid and open dialogue. The key phrase is "candid and open". It means both sides recognize their differences, choose to sit down and talk rather than walk away.

Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry (DIHK), put it bluntly before Merz's visit: China is currently a more predictable partner and competitor than the US.

Without communication and dialogue, we are left peering through a fog, where everything looks like a risk. Once this perception spreads, it will squeeze the space for cooperation.

Merz's trip lasted only two days, but he made time to visit Unitree Robotics in Hangzhou — a Chinese robotics company founded just ten years ago. The leader of a global manufacturing power flying to Zhejiang to visit a startup — this detail speaks louder than any official statement. Germans want to know: In the next five years, what more surprises will China have to offer?

Peter Bofinger, economics professor at the University of Würzburg, noted that when the world's second- and third-largest economies strengthen cooperation, they can bring stability to global supply chains. Max Zenglein from the Mercator Institute for China Studies (MERICS) pointed out that while China-Germany economic relations currently face considerable friction, if a "new normal" can be established, it could lay the groundwork for cooperation over the next three years.

The so-called new normal means no more illusion that the US will ease up and China is always secondary to the West. Merz brought 30 business leaders with him because he wanted to confirm one thing for himself: in a world where not everything is certain, who you partner with determines how certain you can be.

The clear-eyed choice

Merz's "listening more attentively" reveals his sober-mindedness. A clear recognition that the world is moving toward multipolarity, that partners can be more reliable than allies, and that China brings not only opportunities but also direction for the future.

When China-Germany relations stabilize, the stability of China-Europe relations strengthens. This shows the international community: great powers aren't destined for chaotic competition — they can engage in responsible cooperation; the forces shaping international order aren't necessarily "destructive" — they can bring creative changes.

Across 7,500 kilometers, Germany made its choice.

They've got the answer they're looking for.

The author is an international affairs observer.

The views don't necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.

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