Steinmeier begins China visit, urges confidence but voices concern over trade surplus

German President Frank-Walter Steinmeier began a state visit to China on Tuesday with a stop at Volkswagen's research and development centre in the city of Hefei, where the carmaker designs vehicles for the Chinese market. Steinmeier urged German companies to rely on their own strengths in dealing with China. "And that is why I advise us not to hide our light under a bushel," he said, according to dpa-AFX. He added there was also reason for confidence in technology cooperation.

Steinmeier also voiced concern over growing imbalances. "The trade surplus that China is accumulating naturally worries us," he said. Europe must reorganise its economic instruments, but cooperation should continue on a mutually beneficial basis. According to the Federal Statistical Office, China exported goods worth 170.6 billion euros to Germany last year, against 81.3 billion euros the other way – a deficit of just under 90 billion euros. Ralf Brandstätter, head of Volkswagen Group China, said the Hefei centre now focuses solely on smart electric vehicles. According to dpa-AFX, new models are developed there 30 percent faster and up to 40 percent more cheaply.

According to dpa, Steinmeier is due to deliver a keynote speech at Peking University on Thursday and to hold talks with President Xi Jinping and Premier Li Qiang on Friday. His office stressed that trade imbalances must be reduced. Steinmeier also wants China to use its ties with Russia to help end the war in Ukraine. Chancellor Friedrich Merz is touring Asia at the same time and is delivering the Singapore Lecture on Tuesday.