German Chancellor Merz in Beijing; Shanghai relaxes housing purchase restrictions; PLA purges; Cyberspace; US-China

Today’s top items:

1. Merz meets Xi - The Chancellor met with Xi and Premier Li. From the public statements it seems clear he made no headway on Ukraine, but that should not be a surprise. Russia invaded four years ago and Germany and the rest of the EU have not really imposed any meaningful costs on the PRC, so why would Xi think they would now? Merz did get an order for 120 new Airbus jets.

According to the PRC readout of the meeting:

President Xi Jinping stressed that as changes not seen in a century are unfolding at a faster pace, countries should tackle challenges together and pursue a shared future. China and Germany should uphold the central position of the U.N., reaffirm its leading role, and take the lead in safeguarding multilateralism, practicing international rule of law, defending free trade, and advocating for solidarity and coordination. China supports Europe in seeking to increase autonomy and strength, and hopes the European side can work with China toward the same direc…