China seeks closer ties with Germany to ease rare-earth strains
China has pitched stronger economic and industrial cooperation with Germany, aiming to ease tensions caused by export curbs on rare earths and chips that have disrupted German production lines.
The discussions took place on the sidelines of the G20 summit in Johannesburg, where Chinese Premier Li Qiang met German Chancellor Friedrich Merz. Li emphasized the importance of dialogue and proposed closer collaboration in strategic sectors including new energy, smart manufacturing, biomedicine, hydrogen technology, and intelligent driving, News.Az reports, citing Reuters.
Relations between China and Germany had cooled after Berlin criticized China’s export restrictions, prompting German Foreign Minister Johann Wadephul to cancel a planned trip to Beijing in October.
The meeting signals a rapid turnaround, driven by both nations’ need to diversify amid the U.S.-China trade war and rising tariffs.
China imported $95 billion in German goods last year, about 12% of which were cars, while Germany purchased $107 billion in Chinese goods, mainly chips and electronics.
Germany invested $6.6 billion in China in 2024, representing 45% of EU and UK foreign investment into China, highlighting Berlin’s role as a key partner.
Li also called on Germany to maintain a “rational and pragmatic policy” toward China and avoid interference or pressure. For Germany, China remains a critical auto market, accounting for nearly a third of sales by German automakers.
The meeting sets the stage for a potential visit by Merz to China, where he is expected to meet President Xi Jinping, while Wadephul’s rescheduled trip is also planned.
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