German business wants to see China more as a "partner" again

Reuters German business wants to see China more as a "partner" again Andreas Rinke • 1 hour • 2 minutes read Berlin (Reuters) - Companies operating in China are calling on the German government to reverse its China policy in light of the uncertainties surrounding US tariff policy. "German companies in China expect more support from the German government and a more balanced relationship that also sees China as a partner," Oliver Oehms, executive board member of the German Chamber of Commerce in North China, told the Reuters news agency on Tuesday. "Because the current perception of China in Germany represents a significant hurdle for companies." The current trade situation offers China and the EU an opportunity to build new bridges, he added, alluding to the US tariffs and the uncertainty surrounding trade with the US. The demand represents a shift in German policy, which in recent years has primarily focused on reducing risks in business with China. The "Frankfurter Allgemeine Zeitung" also reported that dozens of companies are calling for the future German government to view China more as a partner and not as an adversary in a proposal. "Some German companies are fundamentally pushing for the new federal government to adopt a new tone with Beijing under these new circumstances – and to create a framework for engagement without hesitation," Mikko Huotari, director of the China Institute Merics, told Reuters. In fact, US tariff policy is putting pressure on both the EU and China to "secure all anchors in foreign trade relations," Huotari said. "China's offensive and European openness to this has at least recently gained momentum. Even Chancellor Merz will not stand in the way of this." If China puts forward real, more far-reaching offers such as price controls and export restrictions for electric cars, control of overcapacity, and better market access in China, this momentum will accelerate. During the government of the traffic light coalition of the SPD, the Greens, and the FDP, a new China strategy was adopted that was clearly critical, emphasizing the communist regime's role as a "systemic rival" to democracies and warning against supply dependencies. The coalition agreement between the CDU/CSU and the SPD also states that the China strategy will be revised according to the principle of de-risking. One-sided dependencies must be reduced and "full reciprocity" in relations must be insisted upon. According to the Federal Statistical Office, German exports to China collapsed by 18.6 percent in January and February, while imports rose by 15 percent. Green Party co-leader Franziska Brantner called on the EU to use the US tariffs imposed on China to obtain concessions from Beijing. "Because China does not want to lose access to Europe," Brantner told Reuters. China's leadership could demonstrate, using the example of electromobility, that it is ready for fair trade. If China also wants to be present in the European and German markets, fair competition conditions, for example through joint ventures, are necessary.