"European businesses complain that China, with its low domestic demand, is flooding Europe with cheap goods. Germany's trade deficit with China hit a record 89 billion euros last year. 'This dynamic is not healthy,' Merz admitted after talks on Wednesday. 'We want to reduce these imbalances, which have arisen primarily from overcapacity in China,' he said, vowing that more German officials would visit the country this year."
"Merz's visit was a 'success for both sides', said Wang Dong, a professor at Peking University's School of International Studies. 'Germany secured strong economic and business deals, while China deepened strategic communication with Europe's key power.' Companies from both sides reached more than 10 agreements this week across industries including autos, energy and finance, according to the Chinese commerce ministry."
German Chancellor Friedrich Merz completed his first official visit to China, meeting President Xi Jinping with trade as the primary focus. Merz traveled with numerous business leaders and raised concerns about Europe's widening trade deficit with China, which reached a record 89 billion euros last year. He emphasized that Chinese overcapacity is flooding European markets with cheap goods, creating an unhealthy dynamic. Beyond trade, Merz discussed China's potential influence in ending the Ukraine war and addressed Taiwan concerns. The visit resulted in over 10 bilateral agreements across automotive, energy, and finance sectors. While both sides characterized the visit as successful for deepening strategic communication and securing economic deals, experts noted it did not exceed expectations.
#germany-china-trade-relations #trade-imbalance-and-overcapacity #diplomatic-visit-and-negotiations #european-economic-concerns
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