China's Premier Li Qiang will receive the full state visit treatment with military honors and the finest Germanic dining. But when the delegations sit down in the Kanzleramt, there will be many issues to work through.

China is Germany's biggest trading partner. Business between the two countries was worth $320 billion in 2022. That's up 21 percent from the previous year. China has held that top trade spot for the last seven years, with no sign of that changing.

‌Meanwhile, Germany is the largest source of European investment in China, particularly in the automobile and chemical industries. Chancellor Olaf Scholz was the first foreign leader to visit Beijing when COVID restrictions started to lift in November. That visit was seen as crucial as the two stressed cooperation in times of change.

While the business relationship may be close, the German foreign ministry officially describes China as a "competitor and systematic rival." And in the week before the visit of Premier Li, Chancellor Scholz set out Germany's new security strategy, which mentioned China directly:

‌"China will continue to grow economically, and should continue to grow economically. That China's integration into world trade and global economic relations should not be compromised, but at the same time we have to consider the security issues that arise for us. 

"There are questions of military security, there are other questions that are important as well. And maintaining this balance is ultimately also something that is reflected in the texts, but also in everyday actions and also in talks in Beijing, in Berlin, but also in government consultations."

The ongoing conflict in Ukraine will be a major topic in the talks in Berlin. China, which has retained closer ties than most other countries to Moscow, has positioned itself as a peace broker, while as a NATO and EU member, Germany has become one of Ukraine's largest suppliers of weapons and financial aid.

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Meanwhile, the EU is also expected to lay out its strategy on the relationship with China in the coming weeks. Uli Brueckner, Jean Monnet Professor for European Studies at Stanford University in Berlin, says a lot may depend on what type of relationship the U.S. wants Europe to have with China.

‌"The background of this is that a lot of analysts and politicians believe that the war in Ukraine changes the balance of power between the U.S. and Europe, that we become more condition-takers," Brueckner said.

"If the U.S. want us to follow the American approach, then we should rethink our relationship with China."

‌China has said both itself and the EU are "victims of U.S. economic coercion." Instead, Beijing wants the EU to form an independent and objective perception of China. It hopes to deepen and expand relations with Germany and together contribute to economic prosperity, peace and stability.

While China and Germany differ on some key geopolitical issues, both will want to maintain their important economic relationships as they seek a greater understanding beyond business. In pursuit of that, many believe it makes sense and is reassuring that China's head of government should make his first foreign visit to Germany.

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