Merz invites Japan to back trade alliance as China asks Germany to be ‘rational’
SPY•German Chancellor Friedrich Merz urged Japan to back a proposed alliance to help countries resist tariffs and economic coercion, while China called for Germany and the EU to remain “objective and rational” on trade. A report said Germany’s Asia-Pacific trade deficit could reach nearly €146 billion in 2026.
1. Proposed trade alliance
Merz urged Japan to join a proposed global alliance of “like-minded partners” to defend rules-based trade and coordinate responses to tariffs and economic coercion. He said countries could “present a united front” if others violated global trade rules.
2. China’s response
China said it hoped Germany and the EU would be “objective and rational” on trade and said it was committed to maintaining stable trade and supply chains. The EU has launched trade measures against Beijing as European industry blames surging Chinese exports for factory closures and job losses.
3. Economic and defense ties
A report said Germany’s trade deficit with the Asia-Pacific region could reach nearly €146 billion in 2026, as falling exports to China outweigh growing sales elsewhere in the region. Merz called for closer German-Japanese cooperation on critical raw materials and said the countries were exploring joint fighter jet development. Japanese Prime Minister Sanae Takaichi said the two countries would explore deeper military cooperation and collaboration in the defense industry.
