Germany’s new chancellor, Friedrich Merz, said that his country’s ties with China are being “shaped by systemic rivalry and power politics”, in a first major speech to the Bundestag that suggested a tougher approach that would press China to be more accountable on geopolitical issues. Merz flagged China’s relations with Russia as an area of “great concern” and said he would pursue “strategic de-risking”. “We observe that in China’s foreign policy actions the elements of systemic rivalry are on the rise,” Merz said. “We view the growing closeness between Beijing and Moscow with a great deal of concern. We will push determinedly for China to make its contribution toward ending the war in Ukraine. We will embed our China policy in a regional approach. A stable, free and secure Indo-Pacific is for Germany and for the EU of great strategic importance.”
China, Merz said, would “remain an important partner of Germany and the European Union” on global challenges, but he would still “push assertively for the respect of agreed rules in the areas of industrial and trade policy”. “As part of strategic de-risking, we will continue to reduce one-sided dependencies,” he added, referring to the EU goal of cutting its over-reliance on China for crucial commodities and products. “The international order is changing profoundly. It is being shaped by systemic rivalry and power politics. We have learned that we need to diversify our supply chains and reduce one-sided dependencies,” Merz said. Germany’s influence on the EU’s China policy waned in recent years. It strongly opposed, for example, the bloc’s tariffs on Chinese-made electric vehicles last year, but was unable to exert enough influence to stop them being signed into law. In Berlin’s relative absence, the European Commission led by Ursula von der Leyen was able to take a commanding role in steering the EU in a more assertive direction. But with the return of U.S. President Donald Trump, Brussels has softened its stance, with von der Leyen saying on several occasions that she is open to “deepening” Europe’s trade ties with China.
Noah Barkin, Analyst of Sino-German relations at research house Rhodium Group, said Merz’s speech closely tracked the coalition agreement published this month, but that his language on China and Russia was new. “I expect a certain tension within the new government on the potentially conflicting priorities of growth, competitiveness and a reduction of bureaucracy, on the one hand, and a push for greater security and the stated goal of a ‘strategic de-risking’ from China, on the other,” Barkin wrote in a social media post. On China, Chancellor Merz inherits a relationship plagued by “growing asymmetries, intensified competition and geopolitical pressures”, a report by the Hinrich Foundation and the Mercator Institute for China Studies concluded. “German companies and policymakers alike are being forced to reassess long-standing assumptions as economic engagement faces unprecedented political and structural headwinds,” the report read, as reported by the South China Morning Post.
