Germany warning China again

China still not giving a lā shǐ.

Germany’s Leader Delivers a Blunt Warning to China on Trade – Chancellor Friedrich Merz laid out his complaints in a frank message to his hosts on a trip to Beijing that China had designed to showcase their relationship.

Chancellor Friedrich Merz of Germany arrived in China on Wednesday with an outstretched hand and a list of complaints for his hosts, asking for closer diplomatic ties but also relief from economic policies that he said were impeding “fair competition.”

Rebound?

More like a dead cat bounce.

German Economy Grows by 0.3% in Q4, Stats Office Says – The German ​economy ‌grew ‌by ⁠0.3% in ⁠the fourth quarter ​of ​2025 compared ⁠with ⁠the ⁠previous quarter, the ​statistics ​office ⁠said ⁠on Wednesday, confirming its ⁠preliminary reading.

Meanwhile… German auto exports to China plunged by a third in 2025, economic institute says.

Germany + China = Shock

For Germany.

“The China shock is here,” the German Economic Institute declared last year. Indeed, 2025 will go down as the year in which it could no longer be denied. Germany’s trade deficit with China reached a record level of €87 billion—an increase of €20 billion compared to the previous year. And German exports to China continue to be in free fall. The United States, France, the Netherlands, Poland, and Italy have by now become more important export markets for Germany than China.

Maybe not the best top trading partner to have.

A Tale of Two Headlines

“German business lobby warns of unfair trade practices by China” vs. “China overtakes US to become Germany’s top trading partner.”

China has overtaken the US as Germany’s most important trading partner, according to figures released by Germany’s Federal Statistical Office (Destatis) on Friday.

The sum of exports and imports between the two countries last year totaled €251.8 billion ($296.6 billion), a 2.1% increase, according to Destatis.

China was Germany’s most important trading partner from 2016 all the way through to 2023. In 2024, the US briefly held the title.

German Chancellor Friedrich Merz is also set to visit China next week, where he is set to discuss trade and other topics.

Shock treatment about to begin in Germany

China shock treatment.

If the Chinese can’t displace the American workforce anymore, then they’ll displace another one (or two, or three…).

The China shock hits Germany – Trade with China displaced large parts of the American workforce in the 2000s, but Germany did not experience a similar shock at the time…

Crazy high energy costs, crippling taxation, ever-growing red tape, ineffective government…

In Germany.

What’s not to like? This isn’t rocket science for businesses here. For businesses that are still here, I should say.

Germany’s biggest sports retailer considers moving production to China – Intersport eyes spare Chinese manufacturing capacity as Nike and Adidas back away from the country amid trade war.

One of the world’s largest sporting goods retailers is considering shifting production to China, just as brands including Nike and Adidas move production out of the country in response to US tariffs.

“Flying eye” lasered

“Without reason or prior contact.”

Germany summons Chinese envoy over laser-targeting of surveillance plane – Berlin says incident risked lives of military personnel protecting Red Sea shipping.

A German defence ministry spokesperson said the aircraft involved in the incident earlier this month was a multi-sensor platform plane. Known as a “flying eye” for its wide-range surveillance capabilities over the sea, it is piloted by civilians with military personnel on board…

It was not the first time the Chinese military has been accused of using lasers against western forces, a move that can temporarily blind pilots and affect aircraft electronics systems.

“Donald is right”

On China.

“On this point, Donald is right — there is a serious problem,” EU Commission President Ursula von der Leyen said, as she slammed Beijing for disrupting global trade with subsidies to boost its own companies – accusing the CCP of “weaponizing” its leading position in the production and refinement of raw materials used for cars, batteries and wind turbines.

She then encouraged Trump to join forces with US allies to address China’s trade imbalances, rather than punishing them with his own tariff scheme.

“When we focus our attention on tariffs between partners, it diverts our energy from the real challenge — one that threatens us all.”

German of the day: Erholung

That means rally.

Dow surges 2,300 points for biggest rally in 5 years after Trump pauses some tariffs – Stocks surged Wednesday after President Donald Trump announced a pause in some of the ‘reciprocal’ tariffs, causing a market that’s been under extreme pressure for the last week to explode higher.

The S&P 500 skyrocketed 7.6%, on pace for its biggest one-day gain in five years. The Dow Jones Industrial Average advanced 2,423 points, or 6.4%, also its biggest gain since 2020. The Nasdaq Composite jumped 9.8%.