Germany’s outreach to China signals a reckoning, rather than a shift

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German Chancellor Friedrich Merz is visiting Beijing amid growing concerns about Germany's economic dependence on China. Despite previously warning about China's potential for blackmail and advocating for stronger ties with the U.S., Merz now faces the reality of China being Germany's largest trading partner, with trade totaling around €252 billion in 2023. Germany's export-driven economy, reliant on machinery, chemicals, and cars, is hesitant to jeopardize this relationship. Furthermore, pressure from the U.S., including tariffs and demands for higher NATO spending, adds to Germany's economic challenges. While the U.S. exerts pressure through alliance-based coercion, China presents a challenge through competitive displacement within global value chains.
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