German Chancellor Friedrich Merz has urged Japan to support a proposed alliance of countries committed to defending rules-based trade. Speaking at a business summit in Tokyo on 28 October 2026, he argued that middle-sized trading nations acting together would be harder to pressure than countries negotiating alone. The appeal is aimed at a trading system under strain from tariffs and economic coercion, and it follows similar calls this year from Canada's prime minister for middle powers to work more closely together.

An alliance to answer coercion together

Merz told the Tokyo audience that, if the rules of the global trading system were broken or economic coercion were used, members of such an alliance could coordinate their response and present a united front. He did not name a formal membership list or a start date, and the proposal remains at the stage of an invitation rather than a signed agreement. The idea echoes his call earlier in the trip for European and Asian middle powers to build a strategic partnership covering trade, technology and security.

China's reply, and Germany's trade pressure

China answered the same day, saying it hoped Germany and the European Union would remain objective and rational, work with all parties, and settle differences through consultation and dialogue. Beijing said it was committed to keeping industrial and supply chains stable and secure. The exchange comes as German exporters face a difficult year in Asia: a report by the agency Germany Trade & Invest, seen by Reuters, projects Germany's trade deficit with Asia-Pacific at a record of nearly €146 billion in 2026, with exports to the region expected to fall 3.2 per cent while imports rise 6.4 per cent. Falling exports to China, where local firms have expanded, account for much of that shift.

Sources: Reuters, Reuters (China response).