Germany Flexes Its Economic Muscle Toward China

To save its economy, Germany is toughening its stance on trade relations with China, but the proposed policies could also be weaponized against others.

In a letter to European Commission President Ursula von der Leyen yesterday, Germany and France called for tools to restrict Chinese access to the European Union market, to diversify European supply chains, and to prepare for possible retaliation against China. A policy paper on global economic imbalances accompanied the letter.

• Next week, France and Germany will urge EU leaders at the European Council summit to act on the proposed policy.

A powerful weapon: According to the letter, the European Commission should receive far-reaching powers to exclude economic rivals such as China from the EU single market. “All of this would have been unthinkable just three years ago,” Handelsblatt wrote.

• Action is needed. The EU’s trade deficit with China reached an estimated €1 billion per day in 2025.

Ending EU slowness: The letter states: “We need a comprehensive framework to complement our toolbox with new legal instruments—in a lean and non-bureaucratic way.”

When Germany moves, Europe moves. And this time, it’s a big step. Handelsblatt praised German Chancellor Friedrich Merz for the drastic measures:

Under his leadership, the federal government ushered in nothing less than an economic turning point on Monday. The coalition is realigning its policy toward China and putting an end to years of naivety toward Beijing, which has been costing German industry 15,000 manufacturing jobs every month. This historic shift in policy toward China has received surprisingly little recognition. Yet its significance cannot be overstated.

The EU must overcome its economic downturn to become the superpower it is prophesied to be in Revelation 17 and 18. While reducing its trade deficit with China will likely play a key role in this, Isaiah 23 reveals that these two powers will economically besiege the United States. Thus, the economic weaponry Germany is currently pushing for will eventually be aimed at another target.