German Chancellor Friedrich Merz has wrapped up his inaugural trip to China, describing discussions with President Xi Jinping and the Chinese premier as successful, yet emphasizing that key economic challenges remain.
Speaking in Hangzhou at the conclusion of his visit, Merz highlighted concerns over Chinese industrial overcapacity. “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.
Merz indicated that detailed discussions would continue once he returned to Germany, and that he would instruct Economy Minister Katherina Reiche to visit China to follow up on these issues.
Officials said the talks aimed to balance trade opportunities with fair competition and market stability between the two countries.
The trip, Merz’s first as chancellor to China, underscores Germany’s effort to maintain strong economic ties while addressing structural imbalances that affect European markets.
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