German Chancellor Friedrich Merz visits China’s AI hub Hangzhou with business leaders, aiming to secure new contracts and address trade imbalances
HANGZHOU: German Chancellor Friedrich Merz arrived in the Chinese tech hub of Hangzhou with a large delegation of entrepreneurs, aiming to secure new business deals.
His visit follows meetings in Beijing where he announced a major Airbus aircraft purchase agreement.
The trip underscores efforts to bolster decades-old economic ties amid global uncertainty sparked by US trade policies.
China overtook the United States last year to become Germany’s largest trading partner.
Merz is accompanied by executives from major German automotive firms including Volkswagen, BMW, and Mercedes-Benz.
He visited a Mercedes plant in Beijing to observe a demonstration of self-driving vehicle technology.
In Hangzhou, his itinerary includes visits to sites operated by Germany’s Siemens Energy and Chinese humanoid robot-maker Unitree.
The eastern city is a major centre for Chinese tech innovation, hosting companies like AI firm DeepSeek and e-commerce giant Alibaba.
European business leaders have urged Merz to address a significant trade imbalance during his talks.
Germany’s trade deficit with China reached a record 89 billion euros last year.
Following discussions with President Xi Jinping, Merz confirmed China had agreed to buy up to 120 Airbus aircraft.
“Other contracts were in the pipeline,” Merz added, highlighting the commercial focus of the visit.
Xi expressed a willingness to take bilateral relations to “new levels” during their meeting.
Merz also raised the sensitive topic of Taiwan, emphasising that any potential “reunification” must be achieved peacefully.
The leaders discussed the war in Ukraine, with Xi stating diplomacy was “key to the issue”.
Merz is the latest Western leader to visit Beijing, following Britain’s Keir Starmer and France’s Emmanuel Macron.
The diplomatic engagements come as nations navigate the mercurial foreign policies of US President Donald Trump.
