Mertz's Visit to China: Largest Economic Delegation Since Merkel's Era Will Accompany Him

According to a report by the German newspaper "Handelsblatt," German Chancellor Friedrich Merz (CDU) will make his first visit to China in late February and will be accompanied by a large delegation of 30 senior business representatives. This is the largest delegation accompanying a German chancellor to China since the era of Angela Merkel. Several CEOs of DAX-listed companies are among them. According to "Handelsblatt," there is clearly more interest from the business community in participating in this visit than the available slots.

German companies are increasingly facing pressure from Chinese competitors. These Chinese companies are launching innovative products with highly competitive prices more frequently. This not only poses a challenge to German companies in the domestic market but also creates direct competition in third markets. As a result, concerns about the "impact of Chinese industry" are growing within Germany. France has even warned that a "bulldozer-like impact from China" is occurring in global markets.

However, it is becoming increasingly clear that the interests of politics and businesses on the issue of China are not entirely aligned. European government leaders are discussing how best to protect the EU's industry and jobs, while companies focus more on maximizing profits - regardless of whether these profits are made in Germany or in China.

According to the website table.briefings: For German companies, the core issues of this trip revolve around key economic topics: export controls, competitive distortions caused by the RMB exchange rate, market access, and a fair competitive environment.

At the same time, Germany's economic dependence on China has significantly declined recently. According to a study by the German Institute for Economic Research, about 1.1 million jobs were directly or indirectly dependent on China-related business in 2021, and this number has now decreased by about 400,000. The share of China in Germany's exports has also dropped from 8.5% to 5.2%. This is partly because German and European companies have increasingly served the Chinese market locally, and competition has become more intense.

Despite the decline, China remains strategically significant for many large companies. For example, Volkswagen's future strategic slogan may shift from "In China, for China" to "In China, for the World." Vehicles developed in China will be exported more to third markets to maintain global competitiveness. Oliver Blume, CEO of Volkswagen, told Table.Briefings: "The technologies and products developed in China have brought us new export opportunities - especially in regions where we previously found it difficult to target from Europe." Lower production costs, shorter development cycles, and relatively favorable RMB exchange rates bring advantages but also intensify the conflict between global competitiveness and the creation of value in Europe.

Mercedes-Benz is also feeling the pressure: its net profit fell by half to 5.3 billion euros in 2025, and revenue dropped to 132 billion euros, down 9% year-on-year. The automaker said one reason for the decline in performance was weak performance in the Chinese market. Mercedes-Benz sales in China fell by about one-fifth.

On the EU level, pressure for action is also increasing. EU Commission President Ursula von der Leyen warned that the risk of deindustrialization from China, subsidy issues, and overcapacity are intensifying. France advocates a "Made in Europe" strategy and pushing for common debt, while Germany emphasizes improving productivity and signing new action agreements. There is consensus on one point: Europe's competitiveness faces huge time pressure, and relations with China are a key factor.

According to the list of attendees obtained by "Handelsblatt," the following CEOs of DAX-listed companies will accompany the delegation:

• Bill Anderson, Bayer

• Oliver Blume, Volkswagen

• Roland Busch, Siemens

• Björn Gulden, Adidas

• Ola Källenius, Mercedes-Benz

• Carsten Knobel, Henkel

• Tobias Meyer, DHL Group

• Bettina Orlopp, Commerzbank

• Oliver Zipse, BMW

In addition, Markus Steilemann, CEO of Covestro; Hubertus von Baumbach, CEO of Boehringer Ingelheim; and Lars Wagner, head of Airbus' commercial aircraft division, will also join the delegation on the trip.

Source: rfi

Original: toutiao.com/article/1857269743006732/

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