Habeck took two and a half years to travel to one of Germany’s most important economic partners. Now he is flying there – right into the middle of a simmering trade conflict.
Robert Habeck is travelling to China, but not directly: First, the Green Vice Chancellor and Minister of Economic Affairs is making a stopover in South Korea. An important trading partner, one of the world market leaders in high technology and a friendly democracy. In Seoul, Habeck can take a breather before continuing on to China. An overview of the key points of his trip:
The customs scandal
The EU Commission recently threatened high punitive tariffs on the import of Chinese electric vehicles. They are to be introduced on July 4 if Beijing does not offer an alternative solution to compensate for distortions of competition by then. The Brussels authority accuses Beijing of unfair subsidies, according to which Chinese electric cars are usually around 20 percent cheaper than models manufactured in the EU.
China retaliated by announcing an anti-dumping investigation into imported products from the European Union, involving pork and by-products.
Habeck is not negotiating on behalf of the EU in this matter, his ministry stresses. However, the trade conflict will still be an important topic. The minister will also meet representatives of other EU states on site, so he is placing great importance on a united front.
However, Germany in particular is critical of the impending tariffs. After all, the German economy is particularly dependent on exports. And the cheaper Chinese electric cars are also important for achieving the goals of expanding electromobility.
Chinese technology for German mobile network expansion
It is unclear to what extent components from Chinese manufacturers such as Huawei and ZTE will be part of the future German 5G mobile network. The federal government had been wrangling over this issue for months, with the SPD-led Interior Ministry and the Greens in particular expressing security concerns. There is now said to be a general agreement on the future course of action, but details are not known.
The eternal question: China and human rights
Beijing does not want to be told what to do when it comes to human rights. What happens in Xinjiang, Tibet and Hong Kong is China’s internal affairs and outside interference will not be tolerated, said Foreign Ministry spokesman Lin Jian. Serious human rights violations are repeatedly criticized in the People’s Republic, most recently in Xinjiang in the far west, where, according to reports, members of the Uighur minority have been housed in camps and forced to work.
Volkswagen and its Chinese partner Saic made headlines over allegations of forced labor at a plant there. However, an investigation was unable to prove this. Chemical giant BASF withdrew from a plant in Xinjiang this year following similar allegations.
Activists also repeatedly denounce the fact that people in Tibet are prevented from practicing their religion and culture, for example by a ban on teaching Tibetan. In the former British crown colony of Hong Kong, Beijing introduced a stricter extension of the security law this year. Critics say the new norm restricts freedom of speech and the severe penalties are intended to keep democracy activists in check.
Foreign Minister Annalena Baerbock (Greens) caused controversy with her clear words on the subject during her trip to China last year. Habeck, as Minister of Economic Affairs, could point to German and European supply chain laws, according to which companies can be held accountable if they profit from human rights violations such as child or forced labor.
China’s quest for power in the region
When visiting China, western guests usually have to address the so-called Taiwan question. Beijing makes no secret of its desire to unite the democratically governed country with China – if necessary through military action. The People’s Liberation Army demonstrates its power almost daily in the straits between China and Taiwan with fighter jets and warships.
Taiwan is officially recognized by only a few countries. Germany is not one of them and only maintains diplomatic exchanges with Beijing on the basis of the “One China Policy”.
Another flashpoint is the South China Sea, where China and the Philippines are fighting over areas rich in natural resources. Near some of the reefs that Manila considers to be part of its exclusive economic zone, there are repeated confrontations between the coast guard and navy of both sides.
In 2016, the International Court of Arbitration rejected China’s territorial claims in the disputed region, but China is ignoring the ruling. Both the Philippines and Taiwan are allies of the USA. Washington has pledged support to both, which could have devastating effects on the important trade and economic area in the event of a conflict with China.
China’s good relations with Russia
The fact that Russia’s economy is not suffering more from Western sanctions because of the war in Ukraine has a lot to do with China. Studies show that China is one of the countries that help Russia evade sanctions. China did not attend the Ukraine peace conference in Switzerland last weekend.
The majority state-owned Russian energy company Gazprom is now China’s most important supplier of pipeline gas. President Vladimir Putin is also promoting closer economic cooperation. The bottom line is that Russia is the weaker partner in this relationship: Moscow needs Beijing more than the other way around – and China knows this.
However, Russia is an important helper for China in building a “multipolar world”. “Countries should not be categorized according to their strength. Those with the bigger fist should not have the last word,” said China’s Foreign Minister Wang Yi. China wants to achieve an international order in which countries like the USA are less powerful.
Smoking chimneys and solar boom – China and the climate
China is by far the country that emits the most greenhouse gases in the world. At world climate conferences, the Beijing government is usually one of the brakes on stricter climate protection targets. At the same time, the German and Chinese governments want to work more closely together on this issue and the energy transition; they signed a declaration of intent to set up a corresponding dialogue format a year ago.
While China still generates much of its energy from coal, Beijing is making great strides in expanding renewable energy. According to the Ministry of Energy, in 2023 China built 216 gigawatts of new solar capacity – mainly through solar power plants in remote areas.
According to the Federal Network Agency, Germany added 14.1 gigawatts in the same year. Some observers estimate that China may have already reached the peak of its annual carbon dioxide emissions. Beijing had actually planned to do this by 2030. By 2060, the People’s Republic wants to be climate neutral, i.e. not emit more greenhouse gases than can be absorbed.
Why South Korea?
It is probably no coincidence that Habeck is not only traveling to China, but also to South Korea – a democracy with which Berlin has more in common than with Beijing. The Foreign Office describes the relationship as “close and trusting”, while there is talk of “fundamental differences of opinion” with China.
South Korea is participating in the financial sanctions against Russia because of the war in Ukraine and is also providing humanitarian aid to Ukraine. However, despite requests from Kyiv, the East Asian country is not supplying any military weapons.
South Korea is Germany’s second most important export market in Asia. According to Korea expert Eric Ballbach from the German Institute for International and Security Affairs, the country is facing similar economic policy challenges. Like Germany, an export nation, South Korea has succeeded in reducing its dependence on China. “At the same time, South Korea is also looking for new partners to further reduce its dependence on China.”
Ballbach recommends: “Minister Habeck should go through South Korea with his eyes open, because one can certainly learn a great deal from this country, especially with regard to digitalization, for example.”
Source: Stern
