Germany’s Merz says EU does not want a trade war with China but will defend itself

German Chancellor Friedrich Merz said on Wednesday that Europe does not seek a trade war with China but is determined to defend its industries against unfair practices.

At the Berlin Global Dialogue conference, Merz stressed that the EU has to act against the large trade deficit with China and noted that, upon a Franco-German initiative, officials are readying trade-defense tools targeting market-distorting practices.

"This is not the beginning of a war, of a trade war with China. We are looking for peaceful solutions," Merz stressed. Europe will keep the toolbox ready for use while still seeking to resolve problems with China through dialogue, he added.

"We are opening the toolbox. We are showing the toolbox. But we don't want to make use of our toolbox," the chancellor said. "So this is how we are ready to defend ourselves against unfair practices. And the dialogue has already begun. It's deeper than ever before."

Criticizing certain Chinese trade practices, Merz emphasized European and German industries must also strengthen their own competitiveness.

"We have to do our homework. We are far away from being competitive enough to meet these global challenges," he said. Europe does not intend to close its market to Chinese companies and products, Merz added, but demands fair trade under the same conditions.