China’s Economy
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A long-awaited strategy statement from Berlin is an attempt to set a coherent approach for dealing with China, Germany’s largest trading partner, in policy and business.
By Melissa Eddy
Reporting from Berlin
The German government approved its first national strategy on China on Thursday, defining the Asian superpower as “a partner, competitor and systemic rival” and calling for a significant reduction of dependency on Chinese goods while still maintaining economic ties worth hundreds of billions of dollars.
The new policy calls for export controls and the screening of investments by German companies doing business in China to protect the flow of sensitive technology and know-how. But it fails to address exactly how Berlin plans to review Chinese investments in Germany, a point that has been a recent cause for concern.
Chancellor Olaf Scholz’s government adopted the 61-page document on Thursday, after months of discussions and delays stemming from disagreements within his three-party coalition over how tough their position should be. The strategy echoes themes from the European Union that urge “de-risking” ties with China.
The government said reducing reliance on Chinese producers and consumers would ultimately strengthen the German economy.
“We do not want to decouple from China, but minimize our risks. This includes strengthening our European economy as well as reducing dependencies,” said Annalena Baerbock, the foreign minister. “The more diverse trade and supply chains are set up, the more resilient our country is,” she added.
The strategy takes a tougher line toward China than the one embraced by governments led by Chancellor Angela Merkel, who viewed China as a huge growth market for German goods.
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