What Xi said and why it matters
Meeting in Beijing with German President Frank-Walter Steinmeier on Friday, Xi Jinping urged Berlin to keep policy toward China practical, part of a broader push to calm China's relationship with Europe. He noted that China continues to view the European Union as a partner and stressed that areas of alignment outnumber the points of contention.
He further urged the EU to join China in shaping a fairer international system and a global economy that is more inclusive. Framing the stakes for growth, he said China and Germany, as large economies, share responsibility for supporting China-EU ties and for stable global economic expansion, and that both sides should signal "openness rather than isolation."
Specific asks and offers
Xi said China will keep opening its market and welcomed German companies to grow their footprint there. He also asked Germany to give Chinese firms a fair business environment. Beyond trade access, he pushed to broaden cooperation into artificial intelligence, low-carbon industries, services and the digital economy.
The backdrop for Europe-China trade
Xi's remarks followed a recent speech in Singapore by German Chancellor Friedrich Merz, who argued for closer links between Germany and Asian partners on trade and security as both face pressure from major powers, particularly China. Merz has taken a tougher stance on commerce with China and, together with French President Emmanuel Macron, built a consensus that cleared the way for stronger EU trade tools.
That policy turn is showing up in Brussels: the EU is weighing steps to limit Chinese imports in areas such as chemicals, furniture and machinery.
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What it means for your portfolio
In plain English: Beijing is selling cooperation while the EU tests tougher trade defenses. That mix keeps volatility high for companies tied to EU-China flows, including industrial suppliers, services players and digital platforms, as policy signals tug in opposite directions.
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