China's Vice Premier He Lifeng and German Finance Minister Lars Klingbeil agreed on Monday (November 17) the two countries should strengthen commercial ties and bring an end to months of trade tensions between the world's second and third-largest economies.

Beijing

China and Germany have agreed to work together to resolve ongoing trade tensions and strengthen their commercial relationship. The agreement was reached during a meeting in Beijing between Chinese Vice-Premier Hur Li Feng and German Finance Minister Lars Klingbeil, marking the first visit to China by a minister from Germany's new government.

Key topics included Chinese export curbs on chips and rare earths, which have disrupted German firms, and concerns about overcapacity in sectors such as steel and electric mobility. Both sides committed to seeking joint solutions for reliable supply chains and stable competitive conditions, underscoring the importance of their economic ties amid global market pressures.

China and Germany agree to work on ending trade tensions

China and Germany have agreed to work towards ending trade tensions and furthering commercial ties. The announcement came while Chinese Vice-Premier Hurdley Feng and German Finance Minister Lars Klingbeil met in Beijing Monday. Klingbeil's visit was the first to China by a minister from Chancellor Friedrich Merz's government which took power in Germany roughly six months ago. Ties have grown tense recently for reasons including Chinese export curbs on chips and rare earths. Those moves have caused major disruptions for German firms. Finance Minister Lars Klingbeil. In my talks today, I received assurances from the Chinese side that German and European concerns about export restrictions on rare earths and critical raw materials are being taken seriously and that we want to find joint solutions that ensure reliable access and reliable supply chains. Klingbeil further taught on the topic of Chinese overcapacity in key sectors like steel, solar and electric mobility. He said both countries agreed it should be a shared task to lower such overcapacities and ensure stable competitive conditions. Vice Premier Hur said Beijing was committed to working with Germany to expand joint cooperation. The two countries are bound by an important commercial relationship despite their differences. And their economic ties have become even more crucial as US tariffs squeeze global markets. Chinese companies are now serious competitors for German firms in many sectors. However, data also show China bought $95 billion worth of German goods last year, with a large portion being cars, while Germany bought $107 billion of Chinese goods, mostly chips and other electronic components.

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