German-Chinese relations are strained, and there has been a debate about how to deal with the second largest economy for some time. Business representatives are now seeking talks in Beijing.
Before the German-Chinese government consultations on June 20, top representatives of the German Chamber of Industry and Commerce (DIHK) want to talk about economic relations with China in Beijing.
A delegation led by DIHK President Peter Adrian wants to “address specific concerns of the German economy” with representatives of business and politics, as the trade association announced.
“Relevant for the future of our economic relations”
“After 1,000 days of pandemic-related travel restrictions and delivery bottlenecks, it’s high time to get an idea of the relationships with Germany’s most important trading partner on site,” said Adrian. According to the DIHK, the current challenges should be discussed “in a constructive and critical dialogue”. “We have many issues that we need to talk about and that are relevant to the future of our economic relations,” he said. The results of the business climate flash survey of German companies represented in China will also be presented.
According to the DIHK, talks “also with high-ranking representatives of the central government” are planned in Beijing. In Shenzhen and Hong Kong, the focus is on the innovation infrastructure in southern China and in Hong Kong. In this economic region in particular there is a wide range of cooperation potential for German industry, said Adrian.
Ukraine war and Taiwan threats strain relationships
Relations between China and Germany are particularly strained by the Chinese backing for Russia in the Ukraine war, its threats against democratic Taiwan and German considerations to reduce dependence on China business.
In Germany there has long been an intensive discussion about how to deal with the second largest economy in the world in the future. One of the lessons learned from the Ukraine conflict and the dependency on Russia is that Germany should not be similarly dependent on China. However, the economic ties with China are much more complex.
Industry sources say that China will remain one of the “key markets” and will continue to offer many opportunities for German companies. However, the geopolitical changes could not be ignored. German companies in China are also facing increasing state regulation.