‘China shock’ hits Germany as Merz joins Beijing pilgrimage

German Chancellor Friedrich Merz visited Beijing to address growing economic concerns between Germany and China. During his trip, Merz met with President Xi Jinping and expressed worries about China's increasing industrial overcapacity. He highlighted the significant rise in Germany's trade deficit with China, which has quadrupled since 2020. Merz also pointed out potential risks stemming from the close economic ties between the two nations, citing disruptions experienced by German manufacturers due to China's export controls on computer chips last year. The visit aimed to address these imbalances and challenges in the economic relationship.