Germany’s Merz floats EU-China trade deal as European capitals soften on Beijing

German Chancellor Friedrich Merz has said he can imagine a trade deal with China in the future, signalling a new softening stance towards Beijing in European capitals.“We have set quite a lot in motion when it comes to trade policy. I can also envisage further agreements, for example, in the longer term an agreement with the People’s Republic of China,” Merz said in the German parliament on Wednesday.Merz’s remarks underscore how surging trade and geopolitical tensions with Washington are nudging parts of Europe towards a more accommodating stance on China, even as Brussels insists the conditions for any formal deal remain far from being met.Beijing has been putting the feelers out regarding a potential trade pact with the 27-member union for months, as a flurry of EU leaders and ministers have travelled to the Chinese capital. Merz’s comments – weeks after he returned from his first visit to China as chancellor – suggested the overtures had found receptive ears.“We now need strategic partnerships around the world in order to strengthen ourselves, especially our exports,” Merz added, in comments sparked by a trade deal agreed between the EU and Australia this week.Australian Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen walk together after an address at Parliament House in Canberra on Tuesday. Photo: AAP via ReutersAccording to sources in Brussels, there were no immediate plans to launch free-trade talks with China, as the EU would prefer that Chinese leaders fix problems in the trading relationship.