Germany’s Finance Minister Lars Klingbeil arrived in Beijing to address a record trade deficit and supply chain concerns. He will meet China’s Vice Premier He Lifeng for high-level trade talks. The visit comes amid growing pressure on Berlin to manage China policy effectively.
Klingbeil’s visit marks the first trip by the new German coalition government to China. Officials cancelled a prior trip by the foreign minister due to meeting rejections. Germany wants to discuss critical issues, including Chinese limits on rare earth metals and industrial overcapacity.
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US trade policies have disrupted German exports and pushed Chinese goods toward Europe. The country faces a widening trade deficit of 87 billion euros in 2025. Exports to China fell 13.5% while imports rose 8.3%, straining supply chains and industrial production.
China has imposed export controls on rare earths, affecting German industry. Business groups warn that such measures could nearly halt production. Lawmakers and experts call for a policy reassessment to reduce dependency on China and protect competitiveness.
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Klingbeil will travel to Shanghai and Singapore to meet German companies in Asia. Germany seeks transparency and clearer rules to prevent mixing economic and political interests. The outcome of this dialogue will shape Berlin’s strategy toward China.