China Urges Germany and EU to Maintain Dialogue on Trade and Supply Chains
Beijing says it wants to work with Europe as a reliable partner, as policymakers debate diversification, economic security and continued commercial ties with China.
China has called on Germany and the European Union to take an objective and rational approach to trade and supply-chain issues, responding to German Chancellor Friedrich Merz's proposal for broader market cooperation between Europe and Asia amid growing concerns over trade restrictions and economic dependence.
Chinese Foreign Ministry spokesperson Guo Jiakun made the remarks at a regular press briefing on Wednesday, October 28, according to a Reuters report carried by Yahoo News. Beijing said it was committed to working with other countries to maintain the stability and security of global industrial and supply chains.
The comments came after Merz warned against a complete economic decoupling from China while arguing that Europe and Asia should reduce what he described as unhealthy, one-sided dependencies. His position reflects the challenge facing European policymakers as they seek to preserve commercial opportunities while limiting exposure to disruptions involving strategic goods, technologies and raw materials.
Guo said China hoped Germany and the EU would remain objective and rational, work with Beijing as reliable partners, and resolve differences through consultation and dialogue. The remarks underscore China's preference for continued economic engagement rather than a broader separation of commercial relationships.
China and the EU maintain extensive economic links across manufacturing, consumer goods, machinery, automotive production, chemicals, renewable energy and other sectors. European companies sell products and services in China, while Chinese manufacturers supply components and finished goods to European markets. Changes to tariffs, export controls or investment rules can therefore affect businesses on both sides.
The debate over supply-chain security has become more prominent as governments reassess dependencies in sectors considered strategically important. European policymakers have increasingly discussed the need to diversify sourcing, strengthen domestic industrial capacity and reduce vulnerabilities associated with concentrated production.
Such efforts do not necessarily require the complete withdrawal of companies from the Chinese market. Businesses may instead seek additional suppliers, establish production in multiple countries or hold larger inventories of critical components. However, diversification can increase costs and take years to implement, particularly where manufacturing expertise and supporting infrastructure are concentrated in a limited number of locations.
Germany's approach is especially consequential because of its manufacturing base and longstanding commercial relationship with China. German industrial companies have relied on Chinese demand, production networks and supplier relationships, while also facing pressure to respond to competition and changing geopolitical conditions.
The challenge for policymakers is to distinguish between ordinary commercial interdependence and dependencies that could create serious risks during a political or economic dispute. Companies may support measures that improve resilience but resist policies that create uncertainty, restrict market access or force rapid changes to established supply chains.
China has repeatedly argued that international trade and investment should remain open and that differences should be handled through dialogue. European governments, meanwhile, have sought to protect economic security while retaining the benefits of trade with one of the world's largest markets.
The latest exchange does not, by itself, indicate a new trade agreement or a resolution of existing disagreements. Instead, it highlights continuing diplomatic efforts to manage tensions surrounding market access, industrial competition and supply-chain security.
For companies operating across Europe and China, the practical consequences will depend on future policy decisions, including any changes to tariffs, investment screening, export controls and product regulations. Businesses will also need to assess whether their suppliers and customers are exposed to potential restrictions.
The wider question is whether Europe and China can preserve stable commercial ties while pursuing different approaches to economic security. Beijing's call for dialogue signals its interest in avoiding a deeper deterioration in relations, but the durability of cooperation will depend on how both sides handle their differences in practice.