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Merz warns against decoupling from China in Singapore lecture

The German chancellor urged Europe to strengthen its competitiveness while maintaining dialogue with Beijing amid trade and security tensions.

Singapore Marriott Tang Plaza Hotel and Tang Plaza building
File photograph of the Singapore Marriott Tang Plaza Hotel and Tang Plaza building, taken in 2005. No machine-readable author provided. Sengkang~commonswiki assumed (based on copyright claims). — Marriott Hotel 2, Singapore, Dec 05 — Sengkang~commonswiki (attribution: I, Sengkang) (resized and converted to WebP). CC BY-SA 3.0.Image sourceImage licence: CC BY-SA 3.0
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German Chancellor Friedrich Merz warned against decoupling from China at a lecture in Singapore on 27 October, saying Europe must become more competitive to manage its relationship with Beijing as trade tensions grow, The Straits Times reported. He argued that breaking economic ties would make Germany neither safer nor more prosperous.

Speaking at the 49th Singapore Lecture during an official visit, Merz said a balanced China policy began with a united, strong, resilient and innovative Europe. He favoured de-risking and diversification over a broad separation from China, while maintaining dialogue even where the two sides' interests and values only partly align.

Trade strains behind Merz’s China warning

Merz’s argument comes amid European concern about competition from Chinese manufacturers in electric vehicles, chemicals, pharmaceuticals and industrial machinery. The Straits Times reported that Brussels was alarmed by an EU trade deficit with China of €360 billion in 2025. Merz had visited Beijing in February to discuss Germany’s growing trade deficit and Chinese industrial overcapacity.

Europe and China had reached an agreement earlier in October to cap Chinese hybrid electric vehicle exports to the EU over four years, according to The Straits Times. The continuing strains help explain Merz’s call for Europe to strengthen its own economy while keeping talks with Beijing open.

Security concerns and wider Asian trade ties

Merz also linked relations with China to security and the international order. He urged Beijing to use its influence in Moscow to help bring about a just peace in Ukraine, saying China had particular responsibilities as a permanent member of the UN Security Council. He said Germany would continue its One-China policy regarding Taiwan.

The Singapore stop formed part of a wider Asia tour focused on cooperation and trade. DW separately reported that Merz called for a new free-trade agreement between the 27-member EU and the 12-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Neither China nor the United States belongs to that trade group. The Straits Times also reported his support for stronger EU-ASEAN trade ties.

After meeting Merz, Singapore Prime Minister Lawrence Wong said investors from his country, including sovereign wealth funds, had invested in Germany for many years and would continue investing in Germany and Europe, DW reported. Merz said his government would continue improving investment opportunities in Germany.

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