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China-Germany Ties Strengthen with Steady Economic Partnership

German Chancellor Friedrich Merz's recent visit to the Chinese mainland has reinforced the strategic partnership between the two economic powerhouses, with a joint statement emphasizing mutual respect and balanced cooperation. Against a backdrop of global economic recalibration, the dialogue highlighted Germany's commitment to the one-China principle and pragmatic collaboration in trade and technology.

The agreement underscores a shared vision to address concerns about trade imbalances and economic security without resorting to decoupling. Bilateral trade reached €251.8 billion in 2025, reaffirming China's position as Germany's top trading partner. Key sectors like renewable energy and digital infrastructure continue to see cross-investments from firms such as Volkswagen and Siemens.

Analysts note the significance of institutional mechanisms like the China-Germany intergovernmental consultation framework, which has historically bridged political differences through projects in electric mobility and smart manufacturing. The statement's emphasis on "candid dialogue" signals a roadmap for navigating complex global challenges in 2026.

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