Germanys

German Chancellor visits eastern city, home to AI firm DeepSeek and e-commerce giant Alibaba, with business leaders.

German Chancellor Friedrich Merz has arrived in the tech hub of Hangzhou on the second day of his first official trip to China, flanked by a delegation of business leaders seeking contracts in the eastern city.

Merz travelled from Beijing to the city of some 12 million people on Thursday, where he was due to tour some leading companies, including Germany’s Siemens Energy and Unitree, a Chinese firm producing humanoid robots.

Hangzhou is a major hub in China’s tech sector, home to giants, including artificial intelligence company DeepSeek and e-commerce platform Alibaba.

Before leaving Beijing, Merz, who is being accompanied by a delegation, including executives of German car giants Volkswagen, BMW and Mercedes, visited a Mercedes plant in the Chinese capital where he tested a self-driving vehicle.

‘Improved’ trade relationship sought

Merz’s trip to China, which became Germany’s largest trading partner last year, seeks to deepen decades-old economic ties with the world’s second-largest economy in the wake of tariffs imposed by the United States last year.

But he has also sought to address “challenges” in the relationship, most notably tackling the massive imbalance which saw Germany’s trade deficit with China hit a record 89 billion euros ($105bn) last year, fuelling complaints from German businesses that Chinese competitors are flooding the market with cheaper goods.

In a meeting with Chinese Premier Li Qiang in Beijing on Wednesday, before he met Chinese President Xi Jinping, Merz said he wanted “to improve and make fair” the cooperation between the countries.

Following the talks with Xi and top Chinese leaders, Merz said China had agreed to buy up to 120 Airbus aircraft, and said other contracts were in the pipeline.

The two leaders stressed their commitment to developing closer strategic relations, with Xi telling Merz he was willing to take relations to “new levels”.

Ukraine, Taiwan discussed

The talks between Xi and Merz also touched on geopolitical issues, with the German leader saying any “reunification” with Taiwan, the self-ruled island China claims as its territory, must be done peacefully.

Merz also told reporters that he asked the Chinese government to use its influence with Russia to help end the war in Ukraine, amid frustrations among European leaders that Beijing was not doing enough to bring the war to an end.

“We know that signals from Beijing are taken very seriously in Moscow,” Merz said.

Following the meeting, the two countries released a joint statement saying they supported efforts to achieve a ceasefire and lasting peace in Ukraine, emphasising the importance of fair competition and mutual market access, and committing to resolving any concerns through dialogue, Chinese state media reported.

Merz is the latest in a string of Western leaders to visit Beijing in recent months, including the United Kingdom Prime Minister Keir Starmer, French President Emmanuel Macron and Canadian PM Mark Carney, amid the fallout from the Trump administration’s tariffs on long-established trade partners.

Chancellor says he wants to deepen trade relationship while making it fairer during visit that sees signing of several agreements.

German Chancellor Friedrich Merz has kicked off his inaugural visit to China with a focus on resetting trade relations and deepening cooperation.

Speaking in Beijing on Wednesday, Merz told Chinese Premier Li Qiang that Germany sought to build on the decades-old economic ties with China, while emphasising the need to ensure fair cooperation and open communication.

“We have very specific concerns regarding our ⁠cooperation, which we want to improve and make fair,” said Merz, in an acknowledgement of the strain faced by Germany’s manufacturing sector from Chinese competition.

Li, who met Merz shortly after his arrival in Beijing’s Great Hall of the People, called on both sides to work together to safeguard multilateralism and free trade, in a reference to US President Donald Trump’s tariff policy that has upended the global trading system.

“China and Germany, as two of the world’s largest economies and major countries with important ‌influence, should strengthen our confidence in cooperation, jointly safeguard multilateralism and free trade, and strive to build a more just and fair global governance system,” Li said.

During the meeting, representatives from both sides signed several agreements and memorandums, including on climate change and food security.

“We share responsibility in the world, and we should live up to that responsibility together,” Merz said, adding there was “great potential for further growth”.

He added that open channels of communication were essential, as he announced visits by several ministers in the months ahead.

‘More equal playing field’ sought

Reporting from Beijing, Al Jazeera’s Rob McBride said the visit, in which Merz was being accompanied by a large delegation of German business executives, was important for both Europe’s economic powerhouse and the world’s second-largest economy.

Alongside the signing of deals with Chinese companies, a key focus of Merz’s visit would be “looking for a more equal playing field when it comes to trade”, he said.

“There is a real concern in markets like the European Union about cheaper, sometimes subsidised Chinese products that are looking for markets other than the US, suddenly flooding other marketplaces such as Germany … undercutting many domestic manufacturers there,” he said.

Germany’s imports from China increased 8.8 percent to 170.6 billion euros ($201bn) last year, while its exports to China dropped 9.7 percent to 81.3 billion euros ($96bn).

McBride noted Beijing was seeking to pitch itself as a “responsible advocate of free trade compared to the sometimes unpredictable and chaotic tariffing policy of the US”.

He said the visit would also see Merz attend a banquet with Chinese President Xi Jinping, and visits to German companies with strongly established presences in China, such as Siemens and Mercedes-Benz.

Geopolitics and human rights would also be on the table, he said, with Germany particularly concerned about Beijing’s support, tacit or otherwise, for Russia amid its war on Ukraine.

Western leaders court Beijing

Merz is the latest in a string of Western leaders to visit Beijing in recent months, including the UK’s Keir Starmer, France’s Emmanuel Macron and Canada’s Mark Carney, amid the fallout from Trump’s tariffs on long-established trade relationships.

The chancellor said on Friday he was going to Beijing in part because export-dependent Germany needs “economic relations all over the world”.

“But we should be under no illusions,” he said, adding that China, as a rival to the United States, now “claims the right to define a new multilateral order according to its own rules.”