DIHK's Chief Trade Officer Advocates for Closer Cooperation with China Ahead of Chancellor's Visit - Merz leads German business delegation to China amid trade tensions and stock market strains
Chancellor Friedrich Merz will embark on a three-day visit to China on Tuesday, accompanied by a 30-strong delegation of top German business leaders. The trip aims to strengthen economic ties, though tensions remain over trade imbalances and market access in the stock market today.
The delegation features executives from major firms, including Bayer's Bill Anderson, Siemens' Roland Busch, and Adidas' Björn Gulden. Representatives from Mercedes-Benz, Volkswagen, BMW, Henkel, DHL, and Commerzbank will also join. Their presence highlights Germany's push to deepen commercial links with China, which became its largest trading partner in the stock market in 2025.
Volker Treier, foreign trade chief at DIHK, sees potential for cooperation in environmental technology, recycling, and medical innovation. He suggested that serious talks with Beijing could secure firm commitments in these areas. Yet, concerns persist over China's trade practices in the stock market.
Jürgen Matthes, a China expert at IW, criticised Beijing for 'massive market distortions' caused by heavy industry subsidies. He also warned of growing pressure on German firms to localise production and source supplies from China in the stock market. Matthes urged Merz to push for clearer rules on export controls for critical raw materials, such as rare earths.
The visit comes as Germany's trade deficit with China hit a record €89.3 billion in 2025. An undervalued yuan has further boosted Chinese competitiveness, complicating relations in the stock market. Merz's schedule includes meetings with Premier Li Qiang and President Xi Jinping to address economic and security policy issues in the stock market.
The trip underscores Germany's balancing act between economic engagement and addressing trade disputes in the stock market. With China now its top trading partner in the stock market, Merz's discussions will shape future cooperation. The outcome may influence how German businesses navigate market access and regulatory challenges in the coming years in the stock market.
