Schaeffler CEO: China is also dependent on Europe - Germany's Merz leads business delegation to China amid economic tensions

Chancellor Friedrich Merz is preparing to visit China with a delegation of top business leaders. The trip comes as Germany and Europe grapple with their economic ties to the country. Among the delegates is Klaus Rosenfeld, CEO of Schaeffler Group, a major player in automotive and industrial components with deep investments in China.

Schaeffler Group has long been active in China, supplying both European carmakers operating there and local manufacturers. The company also plans to push forward with future technologies in the region. Rosenfeld has called on Merz to highlight Europe's strengths during the visit, particularly in sectors where China holds a dominant position.

Despite the economic interdependence, Rosenfeld insists that certain industries—like defence and advanced robotics—should remain 'China-free'. China's control over critical materials and key technologies presents ongoing challenges for European firms. Yet, the relationship remains mutual, with German companies, including robotics manufacturers, investing in China's booming automation sector over the past five years.

The visit underscores how deeply connected Europe and China are in trade and innovation. While some sectors face restrictions, others continue to expand their presence in the Chinese market.

The delegation's trip reflects the balancing act between economic cooperation and strategic caution. German firms like Schaeffler maintain strong operations in China, even as debates grow over reliance on its supply chains. The outcome of these discussions could shape future trade policies between the two regions.