Authored by Aaron Pan via The Epoch Times (emphasis ours),
The shift in behavior by the Chinese regime towards the international community has prompted Germany to reevaluate its China policy, as stated by a prominent German diplomat.
Speaking at a foreign policy event at the Hudson Institute on June 28, Thomas Bagger, the Director-General for Foreign Affairs and the state secretary of the German Foreign Ministry, revealed that Germany’s stance on China, previously characterized by a partnership, competition, and systemic rivalry, has now shifted towards viewing China as a rival.
“There has been a noticeable shift from emphasizing partnership and cooperation to a greater focus on competition and even rivalry,” Mr. Bagger emphasized.
Mr. Bagger highlighted that Germany is altering its approach to China, concentrating on reducing risks and lessening dependence on Beijing, particularly in the aftermath of the COVID pandemic. This includes reducing reliance on China for medical equipment, essential medical supplies, and raw materials for technology. He admitted that severing ties with China “would significantly impact our economy.”
Mr. Bagger indicated that Germany is transparent with Beijing regarding its evolving stance. “China’s conduct towards us, its neighbors, and the global stage has changed in a manner that compels us to reassess our own China policy. This response is a reaction to your actions,” he remarked.
Germany unveiled its inaugural Strategy on China last year, signaling its strategic pivot to reduce economic reliance on China. The strategy outlines a blueprint to enhance equitable cooperation with China in alignment with German values and interests.
During the event, Mr. Bagger stressed that unlike the United States, which views China as a geopolitical challenge, Germany adopts its own approach to China.
“We are not America’s subordinate. While we may share common ground with the Americans on various issues, particularly concerning the South China Sea and the need for Chinese compliance with international law, we do not see eye to eye on everything,” he stated.
Mr. Bagger also cautioned that the Chinese regime’s support for Russia’s military actions in its conflict with Ukraine undermines German and European core interests, potentially tarnishing Beijing’s reputation.
“If China persists in violating Europe’s fundamental security interests on the European continent, the repercussions for China will escalate,” he warned.
“If you continue to back Russia’s military campaign against Ukraine, this will impact not only our bilateral relationship but also the broader European-Chinese ties.”
Complex Trading Dynamics
China has been Germany’s leading trading partner since 2015. However, in the first quarter of this year, the United States overtook China as Germany’s top trading partner. Data revealed that Germany’s trade with the United States, encompassing exports and imports, amounted to 63 billion euros ($68 billion) from January to March, surpassing the figure for China by slightly less than 60 billion euros.
In 2023, China retained its position as Germany’s primary trading partner for the eighth consecutive year, with trade volumes reaching 253 billion euros ($270 billion), albeit marginally ahead of the United States.
On June 12, the European Union announced plans to impose a 38.1 percent tariff on imported Chinese electric vehicles (EVs) starting in July following an eight-month investigation. The EU accused Beijing of unfair subsidization. This decision came after Washington’s move last month to raise tariffs on Chinese EVs from 25 percent to 100 percent.
However, Germany opposed the EU’s tariff escalation due to concerns from major automakers like BMW, Mercedes-Benz, and Volkswagen, fearing potential retaliation from China. These companies operate large automobile manufacturing facilities in China that benefit from tax incentives and Beijing’s subsidy schemes.
Moreover, European businesses’ confidence in China has waned since last year, as indicated in a recent survey by the European Union Chamber of Commerce in China titled “European Business in China Business Confidence Survey 2024.” A record 68 percent of companies reported that conducting business in the world’s second-largest economy has become more challenging.
The survey revealed that European companies in China are grappling with uncertainties instead of experiencing the anticipated robust recovery. The report underscored that China’s structural issues, such as dwindling demand, surging overcapacity, and an ongoing downturn in the real estate sector, coupled with market access hurdles and regulatory obstacles, continue to impede European companies.
The survey emphasized that the strategies adopted by these companies to navigate China’s business landscape could potentially exacerbate China’s economic woes, creating a detrimental cycle for the country.
Reuters contributed to this report.
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