Merz warns EU will shield its industry from perceived unfair Chinese trade practices
Germany's Friedrich Merz said the EU is prepared to use new trade-defence tools to counter what he described as subsidised Chinese exports and an artificially low currency.
At a Berlin forum, Friedrich Merz warned that the European Union must be ready to defend its industrial base against what he called unfair Chinese trade advantages, including heavy subsidies and a deliberately undervalued yuan. He pointed to recent diplomatic progress, such as an agreement to curb the flow of Chinese cars into Europe, and insisted these steps do not signal the start of a trade conflict. Merz emphasized the scale of China's trade surplus with the EU, which he said tops €300 billion each year, and acknowledged the strength of Chinese firms while urging respect for their innovation.
He also blamed Europe's own structural problems and rising production costs for weakening German exports. While Merz will travel to Singapore, Japan and South Korea, German President Frank-Walter Steinmeier is set to meet Xi Jinping in Beijing, marking the first visit by a German president since 2018.
Why it matters
EU trade policy could reshape market access for European manufacturers and affect global supply chains.
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