economy
March 17, 2026
When ideology can’t stand up to reality: Why Germany is turning back to China
Berlin is recalibrating its policy towards Beijing as economic gravity overrides ideological distance
TL;DR
- German Chancellor Friedrich Merz visited China, joining a trend of Western leaders seeking engagement with Beijing.
- Germany is reassessing its policy towards China due to domestic economic stagnation, transatlantic relations, and the accumulating costs of "de-risking."
- The visit aimed to strengthen economic and trade cooperation while also holding consultations on international issues.
- Despite trade imbalances, China remains Germany's largest trading partner, and German industry views the Chinese market as indispensable.
- The visit resulted in joint statements and cooperation documents, including China's planned purchase of Airbus aircraft.
- Germany recognizes that coercive decoupling would harm its own economy, opting for calibrated pragmatism instead of confrontation.
- The relationship is characterized by a "cold politics, hot economics" paradox, with plans for managing competition and expanding collaboration in areas of shared interest.
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