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Germany and China have pledged to strengthen their diplomatic ties after a meeting between German Chancellor Friedrich Merz and Chinese President Xi Jinping in Beijing.

Getting into it: During the meeting, both leaders agreed to elevate their “comprehensive strategic partnership,” expand economic cooperation, and manage disputes through dialogue. Xi said he was “willing to work together with the chancellor to continuously advance the comprehensive strategic partnership between China and Germany to new levels,” stressing that “the more turbulent and complex the world becomes, the more China and Germany need to strengthen strategic communication and enhance strategic mutual trust.” He called on both countries to be “reliable partners supporting each other” and “defenders of free trade,” and stressed that China supports resolving differences through “frank and open dialogue.”

The two sides signed agreements covering climate change and green transition cooperation, food security, animal disease prevention, and sports exchanges, while China also agreed to purchase up to 120 Airbus aircraft (a major Airbus hub is based in Germany).

Trade imbalances were a big topic during the talks, with Merz warning that “this dynamic is not healthy,” attributing much of the imbalance to Chinese overcapacity. He called for fairer conditions, stating, “Competition between companies must be fair. We need transparency, we need reliability, and we also need compliance with jointly established rules,” while urging China to reduce market distortions and create a more level playing field.

The leaders also addressed the war in Ukraine. Merz said he had asked China to “use its influence” to help bring an end to Russia’s aggression, adding, “We know that signals from Beijing are taken very seriously in Moscow. That goes for words as well as deeds.” Xi reiterated that China supports a political solution, saying “the key is to persist in seeking solutions through dialogue and negotiation,” and stressed that any process must “address the legitimate concerns of all sides” with “equal participation of all parties.”

This all comes as Chinese President Xi Jinping has sought to elevate trade relations with key US allies amid ongoing tensions between the US and its major trade partners. Over the past month, Xi has announced new trade agreements and met with Canadian Prime Minister Mark Carney, UK Prime Minister Keir Starmer, and Finnish Prime Minister Petteri Orpo.