Merz urges EU-China trade reset in talks with Xi
Friedrich Merz met Chinese President Xi Jinping in Beijing as the German chancellor called for a recalibration of trade ties between the European Union and the world’s second-largest economy amid rising tensions.
The two leaders had held talks, following earlier discussions the same day between Merz and Premier Li Qiang, China’s second-highest ranking official, News.Az reports, citing the Financial Times.
Ahead of his meeting with Xi, Merz — on his first official visit to China as chancellor — stressed that Beijing should allow its currency to appreciate, scale back subsidies for domestic manufacturers and address industrial overcapacity, which European officials say has led to an influx of low-cost Chinese goods into EU markets.
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He cautioned that the surge in Chinese imports has intensified calls for protective trade measures across Europe.
“Due to the sharp rise in Chinese imports, calls for protection are growing louder in Europe,” Merz said. “I want as little protectionism as possible. Stronger Chinese domestic demand, enabled by a moderate appreciation of your currency, would make it easier to continue trading without such barriers.”
Merz also underscored the need to reduce subsidies that distort competition and to streamline sectors where excess production capacity has become a concern. He was also scheduled to attend a dinner with President Xi later in the day.
By Nijat Babayev
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