German Chancellor Friedrich Merz on Wednesday, October 28, urged Japan to back a proposed global alliance to defend rules-based trade, telling a business summit in Tokyo that an alliance of “like-minded partners” would help countries resist the growing use of tariffs and economic coercion, Reuters reported, citing his prepared remarks.

Source: Reuters

“Should the rules of the global trading system be violated by others, or should economic coercion be employed, we could coordinate our actions within the alliance and present a united front,” Merz said, without naming other states — an apparent reference to the United States and China, Reuters said.

Merz met Japanese Prime Minister Sanae Takaichi in Tokyo, and the two leaders issued joint statements on economic security and future technologies, Euronews reported, citing the Associated Press. Their joint statement expressed deep concern about the growing use of economic coercion, including arbitrary export restrictions and retaliatory measures affecting critical raw materials, and the two sides said they would step up cooperation on supply chains and on sectors such as critical raw materials, semiconductors, batteries, electric cars and industrial AI.

Source: Euronews / AP

China responded that it hoped Germany and the European Union would be “objective and rational” and that it was committed to working with all parties to maintain the stability of trade and supply chains, Reuters reported. Beijing rejects accusations of unfair trade practices.

Merz's initiative echoes calls this year by Canadian Prime Minister Mark Carney for the world's middle powers to work more closely together to counter pressure from larger economies, Reuters noted. Coinciding with the visit, a report said Germany's trade deficit with Asia-Pacific is set to hit a record of nearly €146 billion ($163 billion) in 2026 — yaani, about $16,300 crore in dollar terms — driven, the report said, by falling exports to China outweighing growing sales elsewhere in the region.

Germany sees China as both a massive trading partner and a strategic rival, so the alliance pitch is a proposal at this stage — not a signed pact — and Japan has not been reported as formally joining any new alliance.