"Competition is healthy, as long as it remains fair," Merz said amid frequent complaints in Europe about Chinese trade practices and Beijing's restrictions on critical mineral exports.

"We want a partnership with China that is balanced, reliable, regulated and fair," he said just before departing Berlin. "That is what we are offering. And it is also what we hope for from the Chinese side."

Some Western businesses have shifted to a "de-risking" strategy of lessening dependencies on China's market and supplies -- but have also worried about US President Donald Trump's erratic trade policies.

"We need to pursue a policy of de-risking," said Merz, but added that need "that applies not only with regard to China. It would be a mistake for us to seek to decouple ourselves from China."

But he stressed that "we must ensure that no imbalances emerge in German-Chinese relations", at a time Germany's trade deficit with China has grown to 89 billion euros ($105 billion) last year.

"Both sides must reduce risks that arise from ever closer connectivity and one-sided dependencies. That applies particularly with regard to supply chains, technologies and raw materials."

Merz praised the past four decades of China-Germany trade ties but stressed that it was crucial now and in future that "our competition is fair and transparent".

"We must be able to rely on rules that have been agreed on," he said. "With this in mind, we will talk about the great opportunities that German-Chinese cooperation continues to open up."