China's Xi, Germany's Merz stress ties to weather trade turmoil

Xi and Merz Highlight China-Germany Relations Amid Trade Challenges

BEIJING/BERLIN (Reuters) -Chinese President Xi Jinping and German Chancellor Friedrich Merz in a call on Friday highlighted the importance of their countries' relationship as both China and Europe are trying to tackle uncertainty caused by U.S. tariff policies.

Europe and China are among the biggest trading partners of the U.S. and have deep trading ties with each other. Chinese-German trade volume alone accounted for around 246 billion euros ($279 billion) last year, according to official figures.

Germany has in recent years sought a difficult balance in relations with China, seen by Berlin as both a strategic rival and a vital trading partner whose giant market has buoyed Germany's large export-driven economy.

In the call, Xi noted changes in the world unseen in a century, with "intertwined turmoil and transformation," official broadcaster CCTV reported.

"China is willing to work with Germany to open a new chapter in their all-round strategic partnership, to lead China-EU relations toward new development, and to contribute to the stable growth of the global economy," Xi was quoted as saying.

Merz's spokesperson said both leaders emphasized their willingness to cooperate to overcome global challenges.

"Chancellor Merz emphasized the importance of fair competition and reciprocity," he added.

Neither Berlin nor the CCTV report explicitly mentioned U.S. tariffs.

Beijing earlier this month urged Germany not to undermine cooperation in the name of de-risking, a strategy by Europe to reduce its dependence on China trade.

The European Union, of which Germany is the biggest economic power, and China are also at odds over Chinese electric vehicles.

($1 = 0.8814 euros)

(Reporting by Xiuhao Chen, Liz Lee, Ethan Wang and Thomas Seythal; editing by Toby Chopra and Matthias Williams)