While retaining its independence, Mercator Institute of Chinese Studies (MERICS), a think tank, will assume an exclusive role within Germany’s China policy and will receive a significant financial boost of €500,000 as part of a first round of funding from the German Foreign Office in 2024, according to the draft.
The EU and its allies have become increasingly concerned over China's continuing threats towards Taiwan and in the South China Sea, as well as over EU countries’ economic dependence on Chinese markets, production and resources, which they fear could be weaponised by China.
In 2021, MERICS was placed under Chinese sanctions in retaliation for the EU’s sanctions against Chinese officials, preventing MERICS staff from entering China.