Merz pressures Xi on Ukraine in Beijing trip focused on business ties

German Chancellor Friedrich Merz on Wednesday called on the Chinese government to use its influence in Moscow to end Russia's war in Ukraine, as he began a two-day visit to China with discussions on expanding economic and diplomatic ties.

Signals from China are taken very seriously in Moscow, Merz said in Beijing after talks with President Xi Jinping and Premier Li Qiang.

"This applies to words as well as deeds," Merz said. "I would like to expressly welcome China's commitment to peace in the region, which I heard today."

According to the Chinese government, Xi spoke out in favour of negotiations to reach a solution during his meeting with Merz.

However, he again refrained from directly blaming Russia, saying that all parties must be involved on an equal footing and have their legitimate concerns taken into account. 

Germany has long criticized Beijing for maintaining an outwardly neutral stance on Russia's war in Ukraine.

"If Xi Jinping were to tell Putin tomorrow to stop, then he would have to stop the day after tomorrow," the German leader said on Monday before setting off for China.

Beijing is considered Russia's most important backer since most Western nations cut ties with Moscow following the full-scale invasion of Ukraine four years ago.

Calls for closer economic ties

Merz arrived in the Chinese capital earlier on Wednesday for an inaugural visit, being received with military honours at the Great Hall of the People.

Concerns over fair competition were expected to be on top on the agenda, with German businesses having called on Merz to raise issues such as overcapacity and export controls on critical raw materials in China, which overtook the US as Germany's main trading partner in 2025.

During talks with Li, Merz denounced "market-distorting subsidies" for Chinese companies and highlighted China's massive trade surplus with Germany.

Having been accompanied to China by a significant business delegation, Merz insisted that raw materials must be traded "as freely as possible" in a clear reference to rare earths minerals, 90% of which is controlled by China.

At the same time, however, Merz called for more Chinese investment in Germany to create jobs and advocated strengthening a "comprehensive strategic partnership" with China.

The chancellor - who made repeated references to horses in an allusion to the newly begun Year of the Horse - also announced late on Wednesday that the Chinese government has agreed to buy 120 aircraft from Airbus.

Meanwhile, five intergovernmental agreements were signed in the presence of Li and Merz, including accords to continue cooperation on climate change and the fight against animal diseases. Deals were also concluded between the two countries' football and table tennis associations.

'Great potential for further growth'

On the diplomatic side, Merz also called for the resumption of German-Chinese government consultations "which were interrupted by the change of government in Berlin and the pandemic."

Xi said he noted that the chancellor attaches great importance to relations with China.

Under Merz's leadership, the German government is pursuing a fact-based China policy, Xi added. 

Merz earlier underlined the importance of working closely with China at a European level. "We share responsibility in the world, and we should live up to that responsibility together," he said, adding there was "great potential for further growth" on both sides.

Li meanwhile pointed to "changes in the international situation" and, in light of unilateralism and protectionism "in some countries and regions," called for "jointly safeguarding multilateralism and free trade."

After a dinner with Xi on Wednesday evening, Merz is scheduled to visit the southern city of Hangzhou on Thursday.