In Hefei, the Federal President promotes cooperation while China's trade surplus reaches new records. But Steinmeier also calls for more self-confidence towards Beijing.
Frank-Walter Steinmeier is visiting China for the last time as Federal President. His journey takes him, among other things, to Volkswagen and to state and party leader Xi Jinping in Beijing.
Volkswagen is developing electric, connected cars in Hefei with around 3,000 employees in order to reduce costs by 40 percent and shorten development cycles by around 30 percent.
Steinmeier criticized the growing trade imbalance between Germany and China, but emphasized the need for cooperation for mutual benefit.
Hefei. Frank-Walter Steinmeier has been promoting close cooperation between Germany and China for decades. As Foreign Minister, he warned in the Bundestag in 2007 against “panic” in view of the rise of the People's Republic. In 2008 he took a position in Chongqing against the formation of a new political bloc. And this Tuesday, on his last trip to China as Federal President in Hefei, he also warned against thinking in “black and white grids”.
But Germany has long been discussing the “China Shock 2.0”: The People’s Republic’s surplus in world trade rose to $938 billion in the first nine months of 2026; in September alone it was $133.5 billion. In trade with Germany, China's exports increased by 31.4 percent in September, while imports from the Federal Republic only increased by 0.1 percent.
Steinmeier and his wife Elke Büdenbender looked at how German companies are looking for answers to the new reality at the start of the trip in Hefei. The capital of the eastern Chinese province of Anhui is not only an up-and-coming tech metropolis, but also a place of hope for worried German company representatives.
Cooperation models under pressure
Here, Volkswagen develops new electric, connected cars with around 3,000 employees. According to the group, costs fall by around 40 percent and development cycles are shortened by around 30 percent.
“There are many examples of successful German-Chinese cooperation,” said Steinmeier while visiting the Luogang City Park, a former airport that is closed this morning because of his visit.
But Steinmeier expressed measured criticism: The annually growing imbalance in trade, i.e. the surplus that China is accumulating, is worrying Germany. The model of economic cooperation is getting into trouble, but must be continued - but for mutual benefit, he said in Hefei.
VW is cooperating with Chinese start-ups there. The group wants to use the knowledge gained in Hefei worldwide. The representatives in Hefei are convinced that Germany can benefit from China's speed of development and innovative strength. Ralf Brandstätter, head of Volkswagen Group China, sees further market opportunities for the car manufacturer through the location, including in the Asean states and Central Asia.
The situation is tense. Critics see China's trade surplus as the most important reason for the loss of thousands of jobs every month, especially in important German industrial sectors: automobiles and mechanical engineering.
Steinmeier's message connected the themes: dialogue and cooperation should continue, but at the same time Germany should not hide its light under a bushel. He calls for “self-confidence” in dealing with China – two demands that can also contradict each other.
Brussels relies on deals
His trip comes at a time when the European-Chinese cooperation model is under pressure. Chinese manufacturers are quickly gaining share in the German car market, especially when it comes to electric cars.
At the same time, Steinmeier can point to a partial success from Brussels: A few weeks ago in Beijing, EU Trade Commissioner Maros Šefčovič reached an agreement with China's Trade Minister Wang Wentao, according to which China should significantly reduce its exports of hybrid and plug-in hybrid vehicles to Europe in the coming years. However, the joint statement from the EU and China does not give a specific number.
Steinmeier described the agreement as a “good initial success” that also gives hope for other industries. The Federal President spoke with Šefčovič by telephone before the trip, according to the Federal President's Office.
The state visit is the Federal President's first trip to China since 2018. At the same time, Chancellor Friedrich Merz (CDU) is traveling to Singapore, Japan and South Korea. According to the Federal President's Office, both trips take place independently of each other, but were coordinated in advance.
This interaction is not entirely new: in 2022, Steinmeier traveled to Japan and South Korea, while the then Chancellor Olaf Scholz visited Beijing at the same time. In the Chinese capital on Friday, Steinmeier will meet state and party leader Xi Jinping, Prime Minister Li Qiang and the chairman of the National People's Congress, Zhao Leji. On Thursday he will give a speech to students at Peking University.
In China's politics, the former Foreign Minister and now long-time Federal President is considered one of the few German politicians in office with whom there has been an exchange for decades. After two terms in office, Steinmeier will leave office in March 2027. The Federal Assembly will elect his successor on January 30, 2027. The debate about his successor is already underway.
The fact that the Federal President is now traveling to the People's Republic for almost a week - after Hefei, the picturesque mountain region of Huangshan and finally Beijing - was interpreted by some people within the accompanying delegation as a concession from the Chinese side.
Travel without an entrepreneur
Steinmeier is not traveling with a business delegation, unlike Chancellor Merz, who was accompanied by numerous entrepreneurs to China at the beginning of the year. Those close to him say that the Federal President is concerned with systemic economic and trade issues. Representatives of business associations such as Peter Leibinger, President of the Federation of German Industries (BDI), are still there.
Steinmeier will also be accompanied by representatives from the Bundestag, European Parliament, Federal Government, culture, science and civil society. These include the SPD politician Katarina Barley, Vice President of the European Parliament, as well as Omid Nouripour (Greens), Hubertus Heil (SPD) and Johannes Volkmann (CDU), members of the Foreign Affairs Committee in the Bundestag.
Volkmann studied for two semesters in China, including at Tongji University in Shanghai, which has particularly close ties to Germany. Also taking part are China experts who were not allowed to travel to China for a long time for political reasons, such as Mikko Huotari, director of the think tank Merics, and the sinologist and writer Tilman Spengler.
