Germany has emphasized the need for companies to de-risk from China without pursuing a complete decoupling of economies, according to the country's foreign minister, Annalena Baerbock. Speaking at a think tank event in Berlin, Baerbock highlighted that China remains a partner, competitor, and systemic rival for Germany. The country's foreign ministry published a report outlining China's economic strategy to reduce dependence on other nations while increasing their dependence on China. Germany expressed concern over China's assertive pursuit of its interests, attempts to reshape the international order, and impact on global security. While Germany accepts competition with China, it emphasizes the importance of fair rules and aims to become less dependent on critical sectors such as medical technology and rare earths.
China Responds, Calls for Rational View
China's foreign ministry did not immediately respond to Germany's remarks, but the Chinese Embassy in Germany issued a statement urging Germany to view China's development rationally, comprehensively, and objectively. The embassy emphasized that many challenges faced by Germany are not caused by China and that the two countries should cooperate in dealing with challenges rather than considering each other as opponents. China warned against formulating strategies based on ideology, as it could lead to misunderstanding, misjudgment, and damage to cooperation and mutual trust.
Germany Seeks Fair and Sustainable Cooperation
Germany's report acknowledged the importance of economic and trade relations with China, aiming to make the cooperation fairer, more sustainable, and reciprocal. The country does not intend to impede China's economic progress and development but emphasizes the urgent need for de-risking. Germany aims to reduce its dependence on China in critical sectors and avoid exploitation of dependencies. While Germany's imports from China have seen significant growth, it seeks to balance the trade relationship and ensure a fair playing field. The report highlighted that competition with China is accepted, but it should be based on fair rules and not lead to a complete decoupling of economies.
Maintaining Bilateral Cooperation
Germany recognizes China as its largest single trading partner and acknowledges the declining dependencies of China on Europe. The report stressed the importance of economic and trade relations as a key element of bilateral cooperation. Germany wants to ensure that this cooperation becomes fairer, more sustainable, and reciprocal. The report also mentioned the recent meeting between Chinese Premier Li Qiang and German President Frank-Walter Steinmeier, where Li expressed confidence in the prospects of China-Germany cooperation.
As Germany navigates its relationship with China, the emphasis on fair competition, de-risking, and reducing dependencies highlights the evolving dynamics between the two countries. While competition remains, Germany aims to establish a balanced and sustainable economic relationship with China in the face of systemic rivalry.
