Germany’s Merz says challenges remain as he concludes inaugural China trip

German business leaders say overcapacity by Chinese firms has distorted competition. Read more at straitstimes.com.

HANGZHOU – German Chancellor Friedrich Merz wrapped up his two-day visit to China on Feb 26 hailing “good cooperation” with Beijing but pointing to overcapacity by Chinese exporters that have taken a growing share of German markets.

Mr Merz, on his first visit to China as chancellor, visited Chinese robotics producer Unitree, where he was welcomed by dancing robots, a Siemens Energy site and saw self-driving Mercedes-Benz technology in the high-tech hub of Hangzhou.

As well as these “impressive examples of good cooperation, technological development”, he said there were “difficult issues” that needed to be addressed openly.

“Above all, there are issues relating to competition – China has high capacities, some of which are now also posing a problem for Europe because they far exceed market demand,” he said.

“We will have to discuss this in detail after my visit,” he said, adding that he would ask Economy Minister Katherina Reiche to also visit China and said regular government-to-government consultations with China would begin by the start of 2027.

Beijing has repeatedly rejected EU accusations about overcapacity, calling them “entirely unfounded” and instead saying its strengths in areas like renewable energy support common goals including the green transition.