Berlin is set to launch its ‘China strategy’ next year, which is believed to basically re-establish its ties with China.
Scholz’s visit to China is being considered a double-edged sword.
German Chancellor Olaf Scholz is set to visit China on Friday, despite growing domestic opposition and growing concerns in the West about China’s expanding strategic influence. Scholz’s visit is being watched eagerly as he is the first G-7 leader to visit Beijing following the COVID-19 pandemic and the conclusion of the 20th National Congress of the Communist Party of China (CCP).
Before the trip, Scholz signed a trade deal with China. Under this, a 25 percent stake in the Hamburg Container Terminal was handed over to the Chinese shipping company COSCO. However, Scholz’s coalition partners expressed their opposition to the deal. He warned that the deal would increase Germany’s dependence on China. The deal set the tone for a new chapter in the Berlin-Beijing bilateral relationship that began in 1972 and has flourished ever since. China is a major market for German machinery, cars and chemicals. In 2021, the trade between these two countries was more than 245 billion euros.
changing world
The visit comes at a time when China is openly supporting Russia in the Ukraine issue and China’s ties with the US are deteriorating. In a changing world, it will be difficult for Germany to balance its economic and political interests.
On the other hand, China is also worried about its economic troubles and it needs Germany to maintain the pace of development. Preparing the red carpet for Scholz will help China in two ways – Beijing will protect its economic interests, and through this visit, China will be able to expose the ‘European divide’. Through this visit, Scholz could also strengthen his position in the domestic and Western world by persuading President Xi to approach Putin for reconciliation with Ukraine.
China a threat
There is a general atmosphere in Germany that China is in a constant confrontation with Western countries, especially America, amid China’s stand on Taiwan. Also, China’s zero-Covid policy, which has hurt global markets, and its role in Ukraine and the Indo-Pacific region has also angered Western countries.
Although China remains Germany’s largest trading partner in the Indo-Pacific region, Berlin has expanded its economic ties with other countries in the region. As one of the largest arms importers, Germany’s growing diplomatic and political clout in the Indo-Pacific region will be a concern for Beijing.
‘Change through business’
Germany’s strategy to change Russia’s attitude through economic non-cooperation has failed to produce positive results. On the contrary, it made Germany more dependent on one nation. The German people are facing difficulties with President Putin shutting down gas supplies. People are shivering in the cold.
Berlin’s approach to China has not changed the political outlook of the Communist Party of China. If Russia can spare the Germans, history may repeat itself and Germany may continue its sole dependence on China. But German car makers and machinery companies will hardly find large buyers in the Indo-Pacific region due to their high prices And so the dependence of German businesses on Beijing is likely to continue in the foreseeable future.
Berlin launching ‘China strategy’
Berlin is set to launch its ‘China strategy’ next year, which is believed to basically re-establish its ties with China. The Greens are forcing Scholz to assess options in case China becomes more belligerent and invades Taiwan. In such a situation, the US will impose heavy sanctions on Chinese individuals and institutions, which will close the market for German companies.
Although Germany may eventually lay out a roadmap to break away from China, German companies are keen to do business with Beijing. Despite warnings, Germany’s BASF Group announced in July that it would be moving to China’s Zhanjiang city for 10 years. Billion is working on a plan to set up a factory for euros. The group is one of the leading manufacturers of Oil & Natural Gas, Chemicals, Fertilizers and related products.
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