German Chancellor Friedrich Merz says decoupling from China would be a big mistake

German Chancellor Friedrich Merz stated on Oct 27 that decoupling from China would be a big mistake during a lecture in Singapore. Visiting the country on a two-day official visit, Merz delivered the 49th Singapore Lecture organised by the ISEAS – Yusof Ishak Institute at the Singapore Marriott Tang Plaza Hotel. Amid rising trade tensions, he emphasized that building a balanced relationship with Beijing requires Europe and Germany to remain united, innovative, and competitive, while pursuing de-risking and diversification rather than full economic separation.

Merz addressed European concerns regarding a ballooning trade deficit that reached €360 billion in 2025, noting that China's manufacturing might creates friction across sectors like electric vehicles, chemicals, and industrial machinery. He stressed the importance of continued dialogue with major powers even when interests only partially align. During his 20-minute speech, he also discussed the Russia-Ukraine war, urging China to use its influence as a UN Security Council permanent member to help bring a just peace to Ukraine rather than enable Moscow's aggression. Furthermore, he reiterated Germany's adherence to its One-China policy concerning Taiwan.

Merz is currently on a five-day tour of Singapore, Japan, and South Korea, which he termed key regional partners. During a subsequent question-and-answer session, he expressed support for an EU-ASEAN free trade agreement and emphasized that Ukraine must be included in any negotiations to end the war. Minister for Digital Development and Information Josephine Teo chaired the lecture session, highlighting Germany's role as a vital trading partner for ASEAN.