Has Germany’s chancellor drawn a red line on the China-EU trade dispute? According to Bloomberg, German Chancellor Merz stated during a panel discussion at the Berlin Global Dialogue Conference on October 21: “While the EU needs to protect itself from a new wave of overcapacity and currency undervaluation, it remains committed to avoiding trade conflict with China. We do not seek confrontation—but we must be prepared for self-defense and the protection of our industries.”

Merz’s remarks were primarily aimed at domestic audiences, given his persistently low approval ratings. He seeks to demonstrate to Germans that he is safeguarding German industry; otherwise, the far-right AfD party will continue to erode his voter base. The statement also serves as a signal to the EU: with the upcoming October summit approaching, the European Commission is set to present an enhanced package of trade tools. Merz must convey Germany’s support for coordinated action to maintain its leadership within the bloc. Yet by emphasizing that “we do not want a trade war,” he is also signaling caution to more aggressive members like France—resisting pressure from Macron to take a harder stance.

It is also a message to China. The phrase “we do not seek conflict” carries a clear implication: we now have new instruments at our disposal, but we would prefer your proactive concessions. This is not a concession—it is an opening offer. However, Germany’s position differs from that of other EU states. Germany maintains the most extensive economic and investment ties with China among EU members.

Experts from the German Institute for Economic Research put it plainly: China is the “gym” for German firms—those that can survive in the fiercely competitive Chinese market are likely to succeed globally. Yet Germany currently faces a contradiction: while the chancellor calls for reduced dependence, businesses are increasing their investments. This suggests that Merz’s posture is largely political theater, and the real direction of Germany’s economy is determined not by speeches, but by corporate decisions.

In fact, the world sees clearly that the essence of China-EU economic relations is mutual benefit. China is not the root cause of Europe’s challenges—but rather a potential partner in addressing them.

Original source: toutiao.com/article/1879661874580551/

Disclaimer: The views expressed in this article are those of the author alone.