Merz aims for “comprehensive partnership” at China visit as rare earth row persists

On his first visit as German chancellor, Friedrich Merz is aiming to increase cooperation with China wherever possible amid an intensifying green tech rivalry between the two export-heavy economies, newspaper Frankfurter Allgemeine Zeitung reported. Accompanied by the largest business delegation in years, Merz told Chinese president Xi Jinping that he wanted to deepen the countries’ "comprehensive strategic partnership."

A key issue is China's export controls on rare earth elements, which are vital for German industry in such areas as electric mobility, green energy and the defence industry. Germany would like to see these elements traded as freely as possible, as some domestic companies warn of significant problems before the end of the year if China restricts access. 

Germany’s economy is grappling with persistent difficulties due to declining exports, market barriers and increasing competition from Chinese products. While China remains Germany's largest trading partner, 2025 saw German exports to the country fall by 9.7 percent as imports from China rose by 8.8 percent. 

In view of Germany’s strained trade relations with the US under the administration of president Donald Trump, improved cooperation with China is needed for Germany, newspaper Die Zeit reported. 

Merz, whose entourage included representatives from Volkswagen and BMW, and Chinese premier Li Qiang oversaw the signing of five intergovernmental agreements. The countries also agreed to continue cooperation in the fight against climate change. Li also stressed China’s wish to cooperate in areas like automobiles and chemicals as well as emerging fields such as artificial intelligence and biomedicine, according to Reuters.