Just before Chancellor Friedrich Merz (CDU) departed for Beijing, Volker Treier, head of the foreign‑trade department of the German Confederation of Industry and Commerce (DIHK), praised the People’s Republic as a dependable economic partner. “With the volatility of U.S. President Donald Trump, China is at the moment a more predictable partner and competitor than America” Treier told the Funke‑Media newspapers in their Monday edition.
Treier said that, given the uncertainties in the U.S. relationship, there could be deeper cooperation with China in several fields. He highlighted environmental technology, recycling, medical technology and circular economy as areas where joint interests could be pursued. “The more we pursue serious dialogue with Beijing and outline shared interests, the higher the likelihood that China will make firm commitments” he added.
He also acknowledged that European firms’ dependence on critical raw materials sourced from China remains a problem. “In light of China’s export controls on very critical materials such as rare earths or permanent magnets, the Chancellor should demand transparency and planning for German companies” Treier explained. He urged long‑term guarantees for the supply of such critical resources.
Last autumn, Beijing briefly blocked shipments from the Chinese chipmaker Nexperia, nearly crippling European automotive firms. Treier repeated that sustained, focused discussions with Beijing were essential to secure binding assurances. He also noted that undisclosed negotiations tend to be more fruitful than public diplomatic spectacle.
Meanwhile, Jürgen Matthes, a China specialist at the German Economic Institute (IW) in Cologne, accused Beijing of “massive competition distortions”. According to Matthes, China subsidises its industries far more than other countries. He cited the Statistisches Bundesamt’s figures showing that Germany’s trade deficit with China will hit a record €89.3 billion in 2025. Matthes also warned that the deeply undervalued yuan, which has risen more than 40 percent in real terms against the euro since early 2020, gives Chinese firms a substantial advantage: it makes exports cheaper and imports more expensive for China.
“The Chinese government also pressures German and European companies to produce more locally and to source supplies from China” Matthes added. He argued that firms are increasingly doing so to avoid losing market access; as a result, exports are being replaced by production in China.
