HANGZHOU, China: German Chancellor Friedrich Merz arrived in Hangzhou on Thursday with a large delegation of entrepreneurs, aiming to land new business contracts a day after meeting President Xi Jinping and announcing a major Airbus deal.
This is Merz’s first official visit to China as Berlin and Beijing look to build on decades-long economic relations amid global uncertainty driven by the trade policies of US President Donald Trump.
China, the world’s second-largest economy, overtook the United States last year as Germany’s top trading partner, though Germany continues to regard the Communist Party-led nation as a strategic competitor.
Merz’s delegation includes executives from leading German automakers such as Volkswagen, BMW, and Mercedes.
On Thursday morning, he toured a Mercedes facility in Beijing demonstrating autonomous vehicle technology before traveling to Hangzhou to visit Siemens Energy and Chinese robotics firm Unitree.
Hangzhou is home to several major tech firms, including AI startup DeepSeek and e-commerce giant Alibaba.
European business leaders, concerned about the influx of low-cost Chinese goods, have urged Merz to address Germany’s trade deficit with China, which reached a record €89 billion ($105 billion) last year, according to AFP.
Following Wednesday’s talks in Beijing, Merz confirmed China’s agreement to purchase up to 120 Airbus planes.
Additional deals were reportedly in progress. Both leaders emphasized closer strategic cooperation, with Xi pledging to elevate relations to “new levels.”
Merz also raised sensitive issues including Taiwan, stressing any reunification must be peaceful, and the Ukraine war, which Xi said should be resolved through diplomacy.
Merz follows other Western leaders visiting Beijing recently, including UK Prime Minister Keir Starmer, French President Emmanuel Macron, and Canadian Governor Mark Carney, as countries seek stronger ties with China amid US policy uncertainty. President Donald Trump is also expected to visit China from March 31.
