Merz Heads to China: SPD Demands Tough Stance on Trade and Economic Policy

The Social Democratic Party (SPD) has called on Chancellor Friedrich Merz (CDU) to openly address the economic policy tensions between China and Germany during his inaugural visit to the country, which begins on Tuesday. - AFP

As German Chancellor Friedrich Merz (CDU) departs for his inaugural visit to China on Tuesday, the Social Democrats (SPD) are calling on him to directly address the economic and trade frictions between the two countries. "The suspicion of dumping in the steel and automotive sectors must be addressed, as must the high dependency on raw materials, for example rare earths, and the associated potential for political leverage," said SPD parliamentary vice-chair Esra Limbacher in an interview with the Augsburger Allgemeine published on Tuesday.

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Trade Tensions, Mutual Interests and the Case for Made in Europe

Limbacher, who also serves as deputy chair of the German-Chinese Parliamentary Group, did not shy away from calling out Beijing's conduct. "China's at times aggressive trade policy is part of our current economic policy challenges," he said. At the same time, he struck a conciliatory tone on the broader relationship. "We want and need good economic and trade relations with China," he emphasised, noting that such ties serve mutual interests, particularly given that China was Germany's most important trading partner in 2025.

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Limbacher also stressed that Merz must keep domestic sentiment firmly in mind during the trip. A clear majority of people in Germany, he noted, support a greater emphasis on "Made in Europe." "This realisation should travel along in the back of his mind," he said.

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Merz in Beijing: Meetings, Agreements and a Broad Geopolitical Agenda

Merz will depart for China on Tuesday evening and will be received with full military honours in Beijing on Wednesday by Premier Li Qiang, followed by talks and a dinner with President Xi Jinping. Central topics include the dependency of German companies on raw materials and rare earths sourced from China, as well as the question of fair and equal competitive conditions in the Chinese market. Merz is accompanied by a 30-member business delegation, and several agreements are expected to be signed during the visit.

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Beyond economics, the ongoing war in Ukraine and other international conflicts are also expected to feature in the political discussions. The Chancellor will conclude his visit on Thursday in Hangzhou, one of China's leading technology hubs.

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