Will Chancellor Merz’s visit change EU policies towards China?

CHINA FINANCIAL - Report 25 Feb 2026 by Michael Pettis

Special points to highlight in this report:

- Economic data releases in China early in the year are usually not comparable because the very important Spring Festival comes at different times in January and February every year. In addition, in a bid to boost consumption, Beijing decreed that the Spring Festival holiday this year would be nine days long, compared to seven days last year and even fewer in previous years.

- Among the most important events this month is likely to be the visit to Beijing by German Chancellor Friedrich Merz. Following this visit we will have a better sense of how aggressively the European Union is likely to pursue policies that protect it from a further expansion in China’s share of global manufacturing.

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