The already strained diplomatic relations between China and Germany worsened sharply on Thursday when German finance minister Peer Steinbrück was forced to cancel a visit to Beijing because his Chinese counterpart refused to meet him.

German officials acknowledged that Beijing’s stance showed that the Chinese leadership remains deeply angry with Angela Merkel over her meeting in September in Berlin with the Dalai Lama, the Tibetan spiritual leader, and with what Beijing sees as a broader toughening of the chancellor’s stance towards China.