German Chancellor Merz says challenges remain as he concludes inaugural China trip

German Chancellor Friedrich Merz said he had held successful talks with Chinese President Xi Jinping and his prime minister but challenges including Chinese overcapacity remained to be worked out between the countries.

"Above all, there are issues relating to competition - China has high capacities, some of which are now also posing a problem for Europe because they far exceed market demand," he said in Hangzhou at the end of his inaugural visit to China.

"We will have to discuss this in detail after my visit," he said, adding that he would ask Economy Minister Katherina Reiche to also visit China.

-Reporting by Andreas Rinke, Writing by Friederike Heine;Editing by Ludwig Burger/Reuters