The Inside Story Podcast Why is the German Chancellor in Beijing?
Feb 26, 2026
Harry Broadman, a U.S. trade specialist, Dan Wang, an economist on China’s economic model, and Jost Wubbeke, a China industrial policy expert, discuss Germany’s Beijing visit. They explore why Western leaders are going to China now. They unpack Germany’s shifting trade ties, industrial pressures on autos, transatlantic unease, and whether China’s edge is subsidies or real innovation.
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Germany's China Visit Is About Economics Not Optics
- Germany's visit to China is primarily economic aimed at resetting trade relations and supporting German firms.
- Chancellor Friedrich Merz brought 30 business leaders and focused on market access, export controls, and innovation partnerships in China.
Rising Chinese Imports Are Eroding German Manufacturing
- Germany faces a growing trade deficit with China driven by rising Chinese imports and falling German exports.
- This shift strains Germany's auto and manufacturing sectors and intensifies competition in third markets worldwide.
Push For Concrete Market Access And Export Control Wins
- Help German firms compete in China by improving market access and clarifying export controls.
- Merz must secure concrete gains on market access, export-control dialogue, and innovation cooperation to protect German industry.