Germany Chancellor Merz seeks trade balance with China

At the Berlin Global Dialogue economic conference, German Chancellor Friedrich Merz stated that the European Union aims to achieve a ‘new equilibrium’ in trade with China rather than engaging in a trade war. While Merz emphasized the pursuit of peaceful solutions, he stressed that fair trade is a prerequisite and expressed readiness to defend against unfair practices.

Merz specifically highlighted concerns regarding China’s excess capacity, high subsidies in sectors such as the automotive industry, and an artificially depreciated currency. These issues have prompted EU leaders to call for new instruments to combat trade imbalances and to utilize existing tools more effectively to safeguard European interests.

In a separate development at the Invest in Germany summit, Merz highlighted significant economic commitments totaling approximately 230 billion euros. These investments, spanning sectors like semiconductors, AI, and energy, include major projects from companies such as Amazon, Nvidia, and Brookfield.