German Finance Minister visits Beijing amid record trade deficit
Germany’s Finance Minister Lars Klingbeil arrived in Beijing on Monday, becoming the first representative of the new coalition government to visit China. His visit comes as Berlin faces mounting pressure to manage its China policy amid a widening trade gap and supply chain vulnerabilities.
Klingbeil’s trip follows a cancelled visit by Foreign Minister Johann Wadephul last month, after China rejected most proposed meetings. German officials said Klingbeil will focus on major trade issues, including China’s restrictions on rare earths, with positions coordinated in advance with the European Union, News.Az reports, citing Reuters.
“Access to critical raw materials and reducing Chinese overcapacity in sectors such as steel and electric mobility are vital for Germany’s economy and jobs,” Klingbeil said before departing.
U.S. trade measures have disrupted German exports and sparked concerns over diverted Chinese imports, particularly in rare earth metals and automotive chips. Klingbeil is set to meet Vice Premier He Lifeng for the German-Chinese financial dialogue, established in 2015. He will also travel to Shanghai to meet leaders of German mid-sized companies before heading to Singapore.
Recent Chinese export controls and disputes, such as the conflict with the Netherlands over automotive chip supplier Nexperia, have highlighted Europe’s dependency on China for critical materials. Experts warn these measures could significantly disrupt German industry.
German politicians are calling for a full reassessment of China policy, with the Bundestag appointing an expert commission last week to review trade strategy. Germany faces a record trade deficit of 87 billion euros ($101 billion) with China in 2025. Exports to China fell 13.5% from January to August, while imports rose 8.3%.
“Industries are sounding the alarm on competition with China — we need quick measures to offset distortions and strengthen our own competitiveness,” said Ferdinand Schaff of the BDI industry association. Analysts stress that Germany must balance economic needs with geopolitical risks as its exposure to Chinese industrial overcapacity grows.
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