Germany's cozy relationship with China has become a strategic disaster comparable to its failed energy dependence on Russia. Despite tough rhetoric from Merz about fair competition and supporting Taiwan, German multinationals continue doubling down on Chinese investments while subsidized Chinese products flood European markets and destroy the Mittelstand. The new government talks tough but lacks the political will to impose tariffs or reduce economic dependency, risking Germany's economic future.
Merz's visit to China represents a pragmatic reset that recognizes economic reality over ideological posturing. China is once again becoming Germany's largest trading partner, while 93% of German firms plan to maintain or expand their Chinese presence. Rather than following America's erratic unilateralism, Germany should seize concrete cooperation opportunities with a reliable economic partner.
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