China, Germany ‘can settle differences’
Xi sends upbeat message to visiting Scholz while denouncing ‘de-risking’
China and Germany had “no fundamental conflict of interests” and could work out their differences, President Xi Jinping told visiting German Chancellor Olaf Scholz yesterday.
Xi also denounced the EU’s “de-risking” strategy, saying there should be “independent cooperation” to address global challenges, and called for an equal role for all parties in Ukraine peace efforts.
“The industrial and supply chains of China and Germany are deeply embedded, and the markets of the two countries are highly interdependent. Mutually beneficial cooperation between China and Germany is not a ‘risk’, but a guarantee of the stability of bilateral relations and an opportunity to create a future,” Xi said.
He also said both sides should be “wary of the rise of protectionism and insist on looking at production capacity issues objectively, and dialectically proceeding from economic laws and from a market and global perspective”.
Sino-German relations “transcend the scope of bilateral relations” and had an important impact on the world, and the two countries should develop relations with a long-term and strategic perspective, Xi added.
“There is no fundamental conflict of interest between China and Germany and they do not pose a security threat to each other … As long as both sides adhere to mutual respect, seek common ground while reserving differences, communicate and learn from each other, and achieve win-win cooperation, relations between the two countries will continue to develop steadily.”
It was Scholz’s second visit to the country in less than 18 months. It follows the launch of a European Union “de-risking” strategy to reduce the bloc’s economic dependence on China and anti-subsidy inquiries into products such as electric vehicles and solar panels amid claims they are flooding the market.
The investigation feeds into wider concerns in the West about “overcapacity” in Chinese manufacturing – which has promoted claims surplus production is being used to undercut Western competitors.
Germany launched its own strategy last year, which also urged firms to de-risk their relationship with China. But many German firms remain cautious about this approach and continue to invest heavily in the country.
Scholz, who also visited Shanghai and Chongqing on his trip, was accompanied by a large delegation including executives from Siemens, Bayer, MercedesBenz, BMW and Merck Group.
He later met Premier Li Qiang, who told him China hoped to increase mutual understanding while urging Germany to ease hi-tech restrictions and provide a fair business environment for Chinese companies.
Germany is reportedly considering restricting exports to China of chemicals essential for chip-making, amid a push by the United States to get more countries to join its efforts to limit the country’s access to advanced technology.
The pair also attended a panel for business leaders from the two countries, where Li said the economic recovery was “consolidating”. Yesterday saw China announce better-than-expected growth of 5.3 per cent for the first quarter of the year.
The premier also pledged to do more to address foreign investors’ concerns, saying: “China will continue to reduce the negative list for foreign investment access and implement national treatment for foreign-invested enterprises.”
Scholz has been trying to strike a balance between the interests of German business and the EU’s tougher approach to China.
Facing low approval ratings and a dire economy at home, many believe Scholz is trying to boost economic links with China ahead of next year’s federal election.
But China’s strong ties with Russia continue to cast a long shadow over relations with Germany, despite Beijing’s insistence it is neutral in the Ukraine war.
These claims have been greeted with considerable scepticism within the EU, which has warned China not to supply arms to Russia and criticised it for providing economic support.
Scholz told Xi the “rearmament of Russia” threatened European security and said he wanted to discuss how they could work towards a just peace, Germany’s DW News reported.
China has said it would not give any material support to Russia’s war effort and condemned the EU’s unilateral sanctions, whose targets include Chinese companies.
In a post on X, formerly Twitter, Scholz said he had asked Xi to rein in Russia.
“China’s word carries weight in Russia. I have therefore asked President Xi to influence Russia so that [President Vladimir] Putin finally ends his insane campaign, withdraws his troops and ends this terrible war,” he wrote.
CCTV reported that Xi told Scholz that China was committed to peace in Ukraine and willing to discuss international peace talks recognised by both sides.
There is no fundamental conflict of interest between China and Germany PRESIDENT XI JINPING