German chancellor urges global trade alliance as Germany deepens Indo-Pacific ties

German Chancellor Friedrich Merz called for a global political alliance to defend rules-based trade, urging Germany and Indo-Pacific economies to strengthen economic partnerships and diversify supply chains as geopolitical tensions and intensifying U.S.-China competition reshape the global economy.

Speaking at the opening of the 19th Asia-Pacific Conference of German Business (APK) in Seoul on Friday, Merz proposed establishing a "global political alliance for rules-based trade" to defend and strengthen the international trading system and coordinate joint action when it comes under threat.

“When supply chains become political pawns, when access to key technologies is imperiled or when efforts to secure raw materials become a projection of power rather than of fair partnership, this jeopardizes growth, prosperity and, ultimately, the security,” he said.

“Countries that decouple lose security, innovative strength, prosperity and scope for action. We do not wish to withdraw but rather to expand our freedom of action.”

Turning to bilateral ties, the chancellor said Germany and Korea had an opportunity to play a defining role together in countering unilateralism, economic coercion and violations of international law.

He also highlighted the potential for deeper industrial cooperation between the two countries, welcoming a high-tech partnership framework that covers next-generation industries such as microelectronics, industrial artificial intelligence (AI) and robotics.

“(The Korean-German high-tech framework agreement) sets the base for cooperation in next-generation industries such as microelectronics, industrial AI and robotics. It is a message to all of you that we are determined to shape our future,” he said.

Korean Prime Minister Han Seong-sook emphasized the complementary strengths of the two economies during her keynote speech, describing Korea as a strategic bridge connecting Europe and the Asia-Pacific region.

"In this regard, semiconductors are key to building global supply chains and innovation ecosystems and creating new industrial opportunities through cooperation,” she said, adding that the two countries are trusted partners that can strengthen their competitiveness by combining their respective strengths.

“German precision technology is essential to the extreme ultraviolet lithography equipment used to produce cutting-edge semiconductors. Semiconductors produced in Korea using this technology are, in turn, used across various German industries, including the automotive sector.”

Han identified batteries, semiconductors and the application of AI in manufacturing as three priority areas for bilateral cooperation.

“If the industrial data and strengths of the two countries are closely connected, we can accelerate manufacturing innovation and jointly establish new industrial standards in the age of AI,” she said.

At a subsequent panel discussion on shifting global power dynamics and their economic impact, Korea’s Industry Minister Kim Jung-kwan said Korea and Germany should work together to strengthen supply chain resilience while preserving the open trading system, warning against allowing economic security concerns to fuel protectionism.

“We should not allow the pursuit of economic security to undermine the international economic order that has made our economies strong,” he said, adding that both countries, as manufacturing and export-oriented economies, shared an interest in maintaining open trade.

“Korea and Germany have benefited enormously from open and rules-based international economic order … Now we have a shared responsibility to preserve and strengthen. We should not simply respond to change for change's sake, but should work together to shape it.”

Siemens CEO Roland Busch, who chairs the Asia-Pacific Committee of German Business, identified industrial AI and energy technologies as major opportunities for cooperation, saying Germany and Asia could combine their manufacturing expertise, industrial data and technology to accelerate adoption.

He said Korea's manufacturing capabilities and Europe's industrial strengths could create opportunities to scale new technologies across larger markets, but warned that the pace of technological change was becoming a major challenge.

German State Secretary Stefan Rouenhoff said Berlin sought to diversify trade ties and reduce dependencies in critical raw materials, semiconductors and energy technologies.

In a separate press statement, Busch outlined three priorities — innovation, investment and integration — calling for closer industrial AI cooperation, more investment flows and fewer trade barriers.

Rouenhoff said the two countries would renew their energy partnership, focusing on energy security, power grids, storage and decarbonization.

APK 2026, running from Friday through Saturday in Seoul, brings together about 800 business leaders and government officials from Germany and across the Asia-Pacific region to strengthen partnerships and advance economic cooperation.