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flag German Chancellor Merz's China visit boosts economic ties, with record trade and investment despite EU decoupling pressures.

flag German Chancellor Friedrich Merz’s visit to China marked a reset in relations, emphasizing pragmatic economic cooperation. flag Bilateral trade in goods reached nearly $218 billion in 2025, a 5.2% rise, with over 5,000 German firms operating in China and 3,000 Chinese companies in Germany. flag German direct investment in China hit a four-year high of €7 billion in 2025, defying European decoupling calls. flag Experts attribute China’s trade surplus to global supply chain shifts and trade barriers, not unfair practices. flag Cooperation is expanding in services, digital transformation, and innovation. flag The relationship is seen as a model for broader China-EU ties, with mutual respect and engagement viewed as strengthening security, not threatening it.

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