In late October, Germany’s president and chancellor traveled to Asia at the same time but headed in different directions. President Frank-Walter Steinmeier visited China, beginning in Anhui province with a tour of Volkswagen’s research center in Hefei, while Chancellor Friedrich Merz visited Singapore, Japan and South Korea to deepen economic, technological and security cooperation.
The Paper published an article arguing the two trips reflect a single strategic anxiety in Berlin: it wants to keep sharing in the benefits of cooperation with China while reducing dependence by broadening its network of partners, an approach it calls “German-style hedging.”
The article stresses that the two trips do not signal two separate China policies. The President largely performs a representative role, while the federal government sets policy. Steinmeier himself said at Peking University that Germany does not seek decoupling, while also calling for a fix to trade imbalances.
China, the piece argues, is no longer merely a buyer of German goods but also a competitor, a supply chain partner and an innovation hub. Volkswagen, for example, now develops technology in China and plans to use it in other markets. German statistics show bilateral goods trade reached 251.8 billion euros in 2025, making China Germany’s largest trading partner again.
Diplomacy, the author contends, cannot substitute for industrial competitiveness, and protectionism may weaken the urgency to improve products. Merz also acknowledged that Singapore, Japan and South Korea voiced strong concern about possible protectionism in the EU’s Industrial Accelerator Act, exposing a tension in Berlin’s commitment to open trade.
Finally, the article warns that unclear policy boundaries create uncertainty for companies and erode Germany’s credibility. It concludes that hedging works only if it strengthens industrial capability, stabilizes cooperation and makes Germany’s commitment to openness believable.
The author is a researcher at the Institute of National Governance, Huazhong University of Science and Technology.
Source: The Paper, November 6, 2026
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