German Chancellor Friedrich Merz has hinted at a potential trade deal with China, signaling a shift in European stance towards Beijing.

German Chancellor Friedrich Merz has said he can imagine a trade deal with China in the future, signalling a new softening stance towards Beijing in European capitals. “We have set quite a lot in motion when it comes to trade policy. I can also envisage further agreements, for example, in the longer term an agreement with the People’s Republic of China,” Merz said in the German parliament on Wednesday. Merz’s remarks underscore how surging trade and geopolitical tensions with Washington are...