Germany / China ... The German coalition parties have finally agreed to a framework for the future relationship with China. While it remains to be seen how this will translate into concrete steps, this framework will likely be adopted in one form or another across the EU and beyond. The bottom line is clearly "We will not repeat the Russia mistake".
(Translated from German)
Cabinet adopts new China strategy: "Realistic, but not naïve"
Federal government:"We show that we are realistic, but not naïve"
July 13, 2023, 14:21 p.m.Reading time: 3 min
Foreign Minister Annalena Baerbock and Chancellor Olaf Scholz
(Photo: Metodi Popow/Imago)
Months of debate have been going on, and now the German government has adopted the new China strategy. How to deal with the government in Beijing without becoming dependent and jeopardizing economic relations is the key question. The most important points at a glance.
This has been discussed for months inside and outside the coalition, and now the German government's new China strategy was adopted by the cabinet this Wednesday. The 64-page paper, which was published on the homepage of the Federal Foreign Office and presented by Foreign Minister Annalena Baerbock at an event, shows what Germany's relationship with China could look like in the coming years and decades.
" China has changed more rapidly in recent years than perhaps any other country. Anyone who listens to China knows the self-confidence with which it will shape the development of this century," Baerbock writes on Twitter. With its China strategy, the German government is giving itself a compass. "We want to work with China. Because we need China, but China also needs us in Europe," said the Green politician. This applies both to fair competition and to the containment of the climate crisis, which can only succeed together with China.
The Federal Government is operating in an area of tension that is difficult to resolve. On the one hand, it wants to be more self-confident vis-à-vis the government in Beijing and avoid one-sided economic dependencies, for example in the semiconductor industry or pharmaceuticals. On the other hand, it is clear to her that even if relations deteriorate because of the Taiwan issue, for example, a boycott of Chinese companies would hardly be a viable option. The economic interdependencies, from which German companies have also benefited greatly in recent years, are too close. Accordingly, the German government is clearly trying not to jeopardize relations, as was most recently observed at the german-China intergovernmental consultations in Berlin in June.
According to the German government, the China strategy is intended to complement and specify the National Security Strategy published in June. The fact that it is only being presented now and not together with the security strategy in June is seen by some critics as a concession to the government in Beijing.
In the security strategy, China is described as a "partner, competitor and systemic rival", a triad that the EU Commission has formulated for the first time and which the German government has adopted. Exactly this formulation can now also be found in the China strategy. Baerbock also mentioned it in her speech from the Mercator Institute for China Studies, where she presented the guidelines of the strategy. "China has changed and that is why our China strategy must also change," said the Foreign Minister there. We are facing up to the "challenges arising from China's behavior over the past decade." And it shows how Germany can work with China without endangering the free democratic basic order and prosperity. "We are showing that we are realistic, but not naïve," Baerbock said.
The term "de-risking", i.e. the targeted reduction of risks in relation to China, is also mentioned again and again, without it being clear what follows from this. Requirements for German companies that are encouraged to diversify their international business and to invest in other Asian countries are rather general in the National Security Strategy.
In its China strategy, the German government is now trying to spell out concrete measures to reduce Germany's and the EU's dependence on China:
Strengthening the EU's internal market and further developing EU competition law: The Federal Government is pushing for a location policy in the EU and Germany that promotes research and innovation. The focus will be on the digital and green transformation of the economy. The aim is for European companies to be able to compete better than before with Chinese subsidised companies, not only within the EU, but also globally.
Diversify global supply chains through broader risk diversification: Concentrating on a few countries of origin or only one for preliminary, intermediate and end products, such as rare earths, photovoltaics or antibiotics, is to be avoided in the future. The example of Russia has shown how fatal one-sided dependence on the raw materials sector is.
Reduce dependencies in critical areas of information technology: The German government wants to invest even more in research, development and innovation in the IT sector and identify emerging key technologies at an early stage.
Raising awareness among companies: The government wants to exchange confidential information with companies that are particularly exposed to China about their risk analyses.
In addition, Chinese direct investments in Germany and the EU are to be subject to stricter scrutiny, export controls are to be tightened and critical infrastructure and cyberspace are to be better protected against external attacks.
So far, there have been different approaches to China policy in the German government. The Greens, with Baerbock and Economics Minister Robert Habeck, advocated a tougher course towards Beijing than Chancellor Olaf Scholz (SPD). This was particularly evident in the recent participation of the Chinese state-owned company Cosco in a container terminal in the Port of Hamburg, which came about against the resistance of the Greens.
In addition to risk minimization, the China strategy also identifies policy areas in which Germany intends to cooperate more closely with Beijing in the future, for example in climate policy or energy issues. |
