International Courant
German Chancellor Olaf Scholz (R) and Chinese language Premier Li Qiang maintain a press convention on the finish of German-Chinese language financial talks on June 20, 2023 on the Chancellery in Berlin.
Tobias Schwarz | Afp | Getty Photographs
Germany mentioned it’s pressing for firms to de-risk China whereas pursuing “no decoupling” of economies.
“For Germany, China stays a companion, a competitor, a systemic rival. However the side of systemic rivalry has grow to be more and more distinguished in recent times,” mentioned German International Minister Annalena Baerbock. mentioned Thursday on the assume tank Mercator Institute for China Research in Berlin, in response to a translation by DW, a German newspaper.
The minister introduced the nation’s technique in the direction of China and defined how the nation intends to guard its pursuits.
“China’s financial technique is aimed toward making it much less depending on different nations, whereas on the identical time making worldwide provide chains extra depending on China,” the international ministry mentioned in an announcement. Report of 64 pages printed Thursday.
Final week, China imposed export restrictions on two key chip-making metals, in what was seen as a warning for Europe and the US in a expertise battle over high-tech chips.
“When it comes to international coverage, China pursues its personal pursuits rather more assertively and tries in numerous methods to reform the prevailing rules-based worldwide order. This has implications for European and international safety,” the report mentioned.
“We do not have to look too carefully to see that China has modified. Whoever listens to China is aware of the boldness with which it would decisively affect the event of our world,” Baerbock mentioned throughout her speech.
China’s international ministry didn’t instantly reply to CNBC’s request for remark.
The Chinese language Embassy in Germany mentioned in a rack that “China hopes that Germany will take a look at China’s improvement rationally, comprehensively and objectively.”
“Lots of the challenges and issues Germany is presently going through should not attributable to China. China is Germany’s companion in addressing challenges, not its adversary,” the embassy mentioned.
“Viewing China and formulating methods in opposition to China based mostly on ideology will solely exacerbate misunderstandings and misjudgments and harm cooperation and mutual belief between the 2 sides.”
The German International Ministry report additional emphasised that competitors between nations is useful and that “Germany accepts competitors with China”. Nevertheless, it mentioned competitors “should be based mostly on honest guidelines”.
“It isn’t our intention to hinder China’s financial progress and improvement. On the identical time, there’s an pressing want to scale back dangers. Nevertheless, we aren’t in search of to decouple our economies,” the report mentioned.
Germany desires to “grow to be much less dependent in important sectors” reminiscent of medical expertise, prescribed drugs and uncommon earths, the report mentioned. It added that “China has traditionally exploited different nations’ dependencies,” citing semiconductors for instance.
The report additionally mentioned that “financial and commerce relations stay an vital a part of bilateral cooperation with China” and that Germany desires to make sure that this cooperation “turns into fairer, extra sustainable and extra reciprocal”.
China is Germany’s largest single buying and selling companion. In 2022, Germany will import from China rose 33.6% from a 12 months in the past to 191.1 billion euros ($204.4 billion), in response to information from Germany’s Federal Statistical Workplace. In the meantime, German exports to China solely elevated by 3.1% to 106.8 billion euros.
Whereas “China’s dependence on Europe continues to say no, Germany’s dependence on China has grow to be extra vital in recent times,” the report mentioned.
Final month, Chinese language Prime Minister Li Qiang met with German President Frank-Walter Steinmeier to debate bilateral relations between the 2 economies.
Li mentioned China and Germany have “a strong basis for cooperation and powerful momentum for improvement”.
He additionally mentioned that China is “very assured within the prospects of cooperation between China and Germany”.
