Facing the future fearlessly
Germany helps China prepare for fourth industrial revolution
Q: What are your thoughts on current bilateral relations between Germany and China, especially economic relations? Clauss: German- Chinese relations are in good shape and progressing further. A very successful state visit by our president this year and three successful visits by Chancellor Angela Merkel to China within 11 months highlight the mutual trust and the importance we ascribe to our bilateral relations. In the economics field our cooperation has reached a very high and mature level, as well as in trade and in bilateral investment. Germany is China’s major economic partner in Europe and Q: What are the current and future challenges? Clauss: We see a nascent trend towards asymmetry: Last year, we had a large trade deficit with China, almost 20 billion euros ($ 21.8 billion). Before that we had a more balanced relationship. When it comes to investments, we had more than $ 10 billion of Chinese investment in Germany this year, almost 20 times higher than last year. Most of these investments are takeovers of German high- tech companies. German companies in China, however, mostly realize greenfield investments, building new factories and creating new jobs.
The main challenge for the future will be to achieve more reciprocity. If German companies were allowed to buy Chinese companies, especially in the technology sector, we could better tap the full potential of our partnership. In more general terms, we need a level playing field, regulatory stability Q: How should both deal with new trends of de- globalization? Clauss: Germany and China, as leading trading and manufacturing nations, have benefited from globalization more than most other countries. We urgently need signals of openness. Tangible progress in investment negotiations with the EU would be such a signal. A fair solution on the Market Economy Status question, which also takes due account of the problem of over- capacities, would be another. Better market access for foreign companies, would be a third. One of the most worrying political trends at the moment is growing isolationism and fear of globalization’s unintended side- effects. Both currents feed on blaming one’s own problems on others. We can both do our bit to counter these tendencies.