The war in #Ukraine has triggered an intense debate in #Germany about its dependence on Russian energy, but also its far broader economic ties to #China. Here is a sample of what German political and industry leaders have said about this in the past week alone...
"Perhaps the time has come when we should give preference to doing business with those who are not only trading partners but also want to be value partners"
- Finance Minister @c_lindner in @DIEZEIT
"We need to reduce our dependencies on China quickly and significantly. China is threatening Taiwan militarily, and we should already be writing the price tag that the PRC and Chinese leaders will need to take note of"
- CDU leader @_FriedrichMerz on @DLF
"Unilateral dependencies are dangerous in this world of systemic competition, and we must overcome them where they exist today and avert them where they threaten in the future"
- @Der_BDI President Siegried Russwurm in @SZ
Should Germany reduce its dependence on China?
"I can only advise the German and European economy to do so, if only with a view to the supply chains ... Europe urgently needs to define a common external economic policy"
- SPD parliamentary leader Rolf Mützenich in @handelsblatt
"You can't compare China and Russia. We don't have an energy partnership with China. The country is an important market for many German industries ... Do we want to, can we afford to, do without this?"
- @BASF CEO Martin Brudermüller in @FAZ_Politik
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A new survey of German businesses in China shows that 71% plan to increase their investments in the country over the next 2 years & 96% have no specific plans to leave within the next year...
A little over a third of surveyed firms report being treated unfavourably compared to domestic Chinese firms...
And 55% say they are feeling the negative effects of economic and technological decoupling...
According to this @wiwo article, @OlafScholz asked @eucopresident to pass on a message to Xi Jinping in October, assuring him that there would be no change in Germany's policy towards China once he replaced Merkel 1/4 wiwo.de/politik/auslan…
The move reportedly came after a conversation between Scholz and Merkel in which the outgoing chancellor expressed her concerns about a hardening of China policy under the new government 2/4
This is unlikely to go down well with the Greens and FDP who pushed through tough language on China in the coalition agreement with Scholz's SPD, signalling a harder line from the incoming government 3/4
For over a year, Berlin has been banking on the expectation that China would feel the need to do an investment deal with the EU due to ongoing US pressure & the prospect of a transatlantic front. Two weeks ago those hopes were fading 1/8
But China has now made a series of last minute concessions to get a deal done. The view in Berlin & Brussels is that no better deal will ever be on the table. So there is a temptation to grab this even though Beijing has not moved on every EU demand - notably labour rights 2/8
Greens MP @MargareteBause pressed Merkel on this issue in the Bundestag this week. How can she do an investment deal w/China, Bause asked, at a time when Uighurs are subject to forced labour conditions in Xinjiang? 3/8
The CDU leadership in parliament adopted this paper on #5G yesterday evening. It is softer in key areas, paving the way (by my reading) for a #Huawei role in the German network. This is significant! Key elements:
- The core network will have “the highest” security. But for the periphery (“Zugangsnetz”) it states that security standards “should not endanger an immediate shift to 5G” (ie no rip and replace) /1
- By 2025 non-European suppliers should have no more than 30 percent of the peripheral network (ie Huawei share would decline but it would still be present 5 years from now) /2