Germany's chancellor goes to China to talk trade

Summary

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Podcast Summary: Germany's Chancellor Goes to China to Talk Trade

Podcast: Marketplace Morning Report
Host: Liana Byrne, with reporting from Alice Adderley, Rick Kelsey
Episode Date: February 25, 2026

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Episode Overview

This episode centers on German Chancellor Friedrich Merz’s high-profile visit to China, his first since taking office, and the broader implications for global trade, particularly between Germany, China, and the US. It also covers UK business headlines (gold prices, carmaker layoffs, Diageo sales) and a deep-dive into new UK travel rules, with guest commentary on the impacts for travelers and the fight against fraud.

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Key Discussion Points and Insights

1. Germany’s Chancellor Visits China for Trade Talks

Starts at 01:16

• Friedrich Merz’s Visit: The new German Chancellor Friedrich Merz meets with Chinese leader Xi Jinping to discuss economic ties.
  • “There is a great opportunity to develop ties with China...” (Liana Byrne, 01:16)
  • Merz stresses the need for “fair competition and jointly agreed rules” in trade between Germany and China.
• Backdrop: The visit occurs amid global trade complications due to President Trump’s tariffs, weakened US-European relations, and exposed supply chain vulnerabilities.
  • “He's the latest European leader seeking to reset relations with China after a year that's laid bare the fraying alliance with the US and exposed supply chain vulnerabilities.” (Alice Adderley, 01:50)
• Competing with China: Germany faces growing competition from Chinese electric carmakers.
  • Trade issues will also touch on security concerns, including China's influence over Russia concerning the Ukraine conflict.
• Memorable Moment:
  • “[Chancellor] will discuss Beijing’s influence over Moscow with President Xi Jinping.” (Alice Adderley, 02:12)

2. Global Markets and Business News

Starts at 02:22

• Gold Prices: Spikes to over $5,200 an ounce on European markets.
• Aston Martin Layoffs: UK carmaker cuts 20% of staff due to US tariffs on car imports.
• Diageo Updates: Drinks giant rules out selling brands Guinness and Moet Hennessy amid a 2.8% first-half sales drop.
• Chocolate Thefts in the UK:
  • Retailers report an upsurge in chocolate theft, forcing them to lock candy bars in boxes.
  • “Chocolate theft cost nearly $340,000 last year, making it their most stolen product apart from alcohol.” (Liana Byrne, 03:26)

3. New UK Electronic Travel Authorization (ETA) Rules

In-depth segment starts at 03:55

• New Requirement: Almost all visitors to the UK must now apply for an ETA costing £16/$21, echoing systems used in the US and Australia. The EU will introduce a similar visa scheme later in the year.
  • “From now on, people from outside the UK coming through these gates will need to have a UK ETA, an electronic travel authorization.” (Rick Kelsey, 03:56)
• Confusion and Missed Flights:
  • Travelers missing flights due to misunderstanding new requirements.
  • Claire Irwin, Sunday Times: “Week on week people... have wasted huge amounts of money, and they just haven’t understood fully the paperwork that they need.” (Rick Kelsey reporting, 04:17)
  • Case study: Owen Ephraim, traveler from South Wales, describes stressful last-minute visa application in a Toronto airport queue.
    • “I was then, like, asked to sit on the side where I had to wait for the ESTA to be approved. It took about two hours.” (Owen Ephraim, 04:54)
• Fraud & Excess Fees:
  • Scams are common; some websites charge hundreds of dollars for ETAs, masquerading as official sites.
  • “I ended up paying £100, which the first time I had applied cost me £20.” (Jasmine Gallant, 06:02)
  • US Customs and Borders Protection regularly warns about such fraud.
• Purpose of ETAs:
  • Julia Lo Busaid (Advantage Travel Partnership): “This is all about anyone that doesn’t need a visa to travel... How do we control security from that point of view?” (06:39)
  • ETAs typically cost $15–30 and last up to three years.
  • Rick Kelsey: “But don’t forget to do it before you head to the airport.” (07:09)
• UK Government vs. Industry View:
  • Government claims it enhances border security and keeps out threats.
  • Travel industry argues it imposes unnecessary burdens on tourists.

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Notable Quotes

• Liana Byrne (host): "There is a great opportunity to develop ties with China following a meeting with its leader, Xi Jinping." (01:16)
• Alice Adderley (BBC): “Germany is also facing intense competition from China's electric carmakers.” (01:58)
• Rick Kelsey (BBC): “From now on, people from outside the UK coming through these gates will need to have a UK ETA, an electronic travel authorization.” (03:56)
• Claire Irwin (Sunday Times): “Week on week, people... have wasted huge amounts of money, and they just haven’t understood fully the paperwork that they need.” (04:22)
• Jasmine Gallant (traveler): "I ended up paying £100, which the first time I had applied cost me £20." (06:02)
• Julia Lo Busaid (Advantage Travel Partnership): "How do we know who's in the country? How do we control security from that point of view?" (06:39)
• Rick Kelsey (BBC): "But don’t forget to do it before you head to the airport." (07:09)

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Timestamps to Important Segments

• 01:16: Lead story – German Chancellor visits China, trade and geopolitical context
• 02:22: Markets update: gold, Aston Martin, Diageo, and chocolate theft
• 03:55: UK introduces new travel visa rules (ETA)
• 04:54: Owen Ephraim recounts airport visa mishap
• 06:02: Jasmine Gallant’s experience of visa fee fraud
• 06:39: Julia Lo Busaid on purpose of ETAs
• 07:09: Practical advice for travelers about new travel rules

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Tone and Language

The tone is brisk, informative, and news-driven, in line with the Marketplace Morning Report’s accessible but authoritative style. The guests and hosts remain practical and focused on relaying facts and actionable advice, with occasional commentary to shed light on how policy changes affect ordinary people.

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Conclusion

This episode delivers a succinct overview of the latest business headlines, with a spotlight on Germany’s evolving relationship with China, the tension between securing borders and enabling travel in the UK, and how consumers and businesses are coping with regulatory changes and economic headwinds. Real-life anecdotes from travelers and perspectives from industry experts make the episode especially relevant for listeners impacted by these developments.

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Transcript

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[Liana Byrne]

Germany's Chancellor goes to China to talk trade. Live from the uk this is the Marketplace morning report from the BBC World Service. I'm Liana Byrne, back from for the next three days. Good morning. The German Chancellor, Friedrich Merz says there is a great opportunity to develop ties with China following a meeting with its leader, Xi Jinping. Mertz is currently on his first visit to China, which is Germany's biggest trading partner since becoming leader 10 months ago. Before the trip, he said there needs to be a fair competition and jointly agreed rules between the two countries. The BBC's Alice Adderley has more.

[Alice Adderley]

Chancellor Mertz's visit comes against a background of world trade complicated by President Trump's imposition of tariffs. He's the latest European leader seeking to reset relations with China after a year that's laid bare the fraying alliance with the US and exposed supply chain vulnerabilities. Germany is also facing intense competition from China's electric carmakers. Away from trade, the German chancellor aims to raise the conflict in Ukraine. He'll discuss Beijing's influence over Moscow with President Xi Jinping.

[Liana Byrne]

Alice Adderley there now. Let's see the numbers the price of gold is on the rise again. It's been trading at over $5,200 an ounce on markets in Europe this morning. UK carmaker Aston Martin says it's cutting 20% of its staff. The firm has been badly hit by US tariffs on overseas auto imports. And drinks giant Diageo has ruled out selling its share of brands Guinness and Moet Hennessey as it caught its outlook after a 2.8% drop in sales for the first half. Now British retailers say the theft of chocolate from grocery stores is out of control in parts of the country. Some retailers now lock candy bars in transparent plastic boxes to make stealing them more difficult. They say stolen confectionery is resold to raise money for organized crime. One grocery group in the English Midlands says chocolate theft cost nearly $340,000 last year, making it their most stolen product apart from alcohol. Now, from today, almost all visitors to the UK will need to apply for an et, that's an electronic travel authorization, before they enter the country. It costs 16 pounds or $21, and follows similar schemes already in place in the US and Australia. The EU will also bring in its own compulsory entry visa later on in the year. The UK government says it prevents those who are a threat from getting into the country, but some travel groups say it's an unnecessary burden on tourists. The BBC's Rick Kelce reports

[Owen Ephraim]

through airport

[Rick Kelsey]

passport security, a biometric scan and I'm through. From now on, people from outside the UK coming through these gates will need to have a UK ETA, an electronic travel authorization. It costs £16, about US$20, and you'll need to apply three days before to guarantee you'll get it on time. Claire Irwin is travel editor for the Sunday Times. In the uk, we hear week on week, people who have been unable to board flights have wasted huge amounts of money and they just haven't understood fully the paperwork that they need to to cross the border. The European Union's new entry and exit scheme will come in from October. There are thousands of messages on travel forums. You can read about people missing flights because frankly, they didn't know about these new visas, just like video producer Owen Ephraim from South Wales.

[Owen Ephraim]

So when I checked in to the flight in Toronto, they were like, you don't have an esta, you need one to board the flight. So I had to apply for one. Whilst in the queue to check in. I was then, like, asked to sit at the sit on the side where I had to wait for the ESTA to be approved. It took about two hours. Luckily I was like three hours early for the flight and then once it got approved, they let me through and then I was rushed to security. They let me go through security with priority. But then I got through to immigration and that was a huge queue. And there were other people in the queue, like about to miss their flight.

[Rick Kelsey]

Owen, unlike many others, just made it. There's also the problem of fraud and businesses making large profits off the new arrangements. Almost all the visas ask that people book directly from the government or official site of the country that you're visiting. But this has not stopped companies charging sometimes hundreds of dollars for doing it for them, even masking as official partners, which is what happened to Jasmine Gallant from New Brunswick in Canada.

[Jasmine Gallant]

We had paid our our flight. This link appeared and said all travelers to the UK need a traveling visa. So I applied for it. They never mentioned any fees. I just assumed that was going to be the same fees as before. But I ended up paying £100, which the first time I had applied cost me £20.

[Rick Kelsey]

Estafraud is frequent enough that US Customs and Borders Protection regularly warns travelers about these type of scams. Julia Lobusaid is from the Advantage Travel Partnership, a global group of independent travel businesses.

[Julia Lobusaid]

So this is all about anyone that doesn't need a visa to travel to a country. How do we know who's in the country? How do we control security from that point of view? If you apply for a visa, if you're a country that needs to apply for visa, then you've, you've already had pre authorization, but up until now we've not had that.

[Rick Kelsey]

Most of these new travel Authorizations cost between 15 and $30 and they last for up to three years. But don't forget to do it before you head to the airport. I'm the BBC's Rick Kelsey for Marketplace,

[Liana Byrne]

and if you want to read about the new rules and find out how this will affect dual nationals, just check out the BBC website in the uk. I'm Lianna Byrne with the Marketplace Morning Report from the BBC World Service.

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