German Chancellor Friedrich Merz signals support for a European Union-China trade deal, amid rising tensions with the US and a growing flood of low-cost Chinese imports.

German Chancellor Friedrich Merz signalled support for a European Union-China trade deal, as rising tensions with the United States complicate Europe’s response to a growing flood of low-cost Chinese imports. Merz told German lawmakers on Wednesday he could envisage an agreement with China in “the longer term” among other trade accords. “We now need strategic partnerships around the world in order to strengthen ourselves, especially our exports,” he said. The comments highlight an emerging split...