The situation
China’s Foreign Ministry said on October 28 that Germany and the European Union should remain “objective and rational” and resolve differences through dialogue and consultation. It said Chinese, German and European industries are economically complementary and mutually embedded, and reiterated China’s support for stable global industrial and supply chains.
The response followed Merz’s October 27 speech in Singapore, in which he advocated reducing unhealthy one-sided dependencies while arguing that full economic decoupling from China would be a mistake. No new China-EU or bilateral trade measure, access rule or supply-chain requirement was announced.
Why it matters
The exchange underscores that Europe’s effort to reduce concentrated economic exposure to China is proceeding alongside continued opposition to broad decoupling. For companies with China-linked manufacturing or sourcing, the immediate implication is political scrutiny of dependencies rather than a verified change in operating rules.
Dialogue remains the stated position, but the evidence does not establish a negotiated outcome or an EU-wide policy decision.
Current state
Conditions are unsettled but not disrupted: China and Germany are publicly articulating differing approaches to economic dependency, while China calls for consultation and no new trade, access or supply-chain operating measure has been announced.
Impacts
Trade & Supply Chains
Public disagreement over dependency reduction raises scrutiny of China-linked sourcing and manufacturing exposure, but no verified rule, restriction or supply-chain disruption has changed current operations.
Diplomacy
China has publicly pressed Germany and the EU to handle differences through consultation after Merz framed dependency reduction as a strategic priority.
Economic Pressure
The exchange signals sharper policy attention to economic exposure rather than an enacted coercive measure; no tariff, export control, licensing action or market-access restriction was announced.
What to watch
Key questions
- Do Germany or the European Union announce a formal policy, investment-screening, trade or supply-chain measure that operationalises reduced one-sided dependencies?
- Do China, Germany or the European Union begin formal consultations that produce a joint statement or agreed supply-chain mechanism?