Published by Global Banking & Finance Review®
Posted on February 26, 2026
1 min readLast updated: April 2, 2026
Add as preferred source on GoogleGerman Chancellor Friedrich Merz ended his first China trip in Hangzhou after talks with Xi Jinping and Li Qiang. He noted progress but warned Chinese overcapacity is straining EU competition and asked Economy Minister Katherina Reiche to follow up.
HANGZHOU, China, Feb 26 (Reuters) - German Chancellor Friedrich Merz said he had held successful talks with Chinese President Xi Jinping and his prime minister but challenges including Chinese overcapacity remained to be worked out between the countries.
"Above all, there are issues relating to competition - China has high capacities, some of which are now also posing a problem for Europe because they far exceed market demand," he said in Hangzhou at the end of his inaugural visit to China.
"We will have to discuss this in detail after my visit," he said, adding that he would ask Economy Minister Katherina Reiche to also visit China.
(Reporting by Andreas Rinke, Writing by Friederike HeineEditing by Ludwig Burger)
Germany’s Chancellor Friedrich Merz concluded his first visit to China, reporting constructive talks while highlighting ongoing challenges such as Chinese industrial overcapacity.
Merz says China’s high production capacity exceeds market demand, creating competitive pressure on European industries and complicating fair-market conditions.
Merz plans detailed follow-up discussions and intends to ask Economy Minister Katherina Reiche to visit China to continue talks on competition and trade issues.
Explore more articles in the Finance category
