China and Germany set example in finding common ground
- Amid growing calls in the European Union to “de-risk” ties with Beijing, a high-level financial dialogue between China and Germany put the focus on cooperation
The longer relations between China and Europe remain mired in trade and geopolitical tensions, the more important it is for the two sides to seek out common ground for pursuing closer cooperation. Germany, Europe’s economic powerhouse, and China set a good example in this regard in their first high-level financial dialogue in four years in Frankfurt last weekend. The talks updated a financial cooperation agreement first signed in 2019.
After meeting vice-premier He Lifeng, German finance minister Christian Lindner said the two sides had a very constructive discussion and it was hoped the talks could become an annual event. The two sides issued a joint statement aimed an expanding market access and deepening cooperation in capital market investments.
The meeting followed a mission to Germany led by Chen Wenqing, China’s most senior security official, accompanied by officials from a broad range of government financial, foreign affairs and industrial bodies. These contacts come against a backdrop of a tougher German strategy on China and growing calls in the European Union to “de-risk” ties with Beijing.
One reason the weekend finance talks presented a harmonious front is that Lindner avoided raising sensitive issues in public – to the point where one local critic, a policy think-tank chief, said Germany should find less “sycophantic” ways of signalling a more cooperative stance, compared with the EU Commission.
The focus on cooperation as a basis for building closer bilateral and multilateral economic ties continues the theme of Premier Li Qiang’s warmly received visit to Germany and France last July. It is a sound strategy so long as Europe finds itself caught in the middle between China and the United States, with Germany and France in particular uncomfortable at times with Washington’s hardline policy.
It is understandable EU members are asserting more independence where their core interests are concerned. At the same time, the bloc recognises great opportunities for working together with China to tap the potential for growth in the huge mainland market that would galvanise post-pandemic recovery.
Berlin’s approach to China may be largely in line with that of its Western allies, but it is hesitant to take tougher measures that could harm its economy. In particular, German Chancellor Olaf Scholz has urged caution on a EU investigation into state subsidies for Chinese electric vehicle exports, apparently out of concern that China, which has made its displeasure plain, will take retaliatory measures.
Ultimately, the argument for cooperation between China and Germany rests on their commitment as industrial and trading giants to globalisation.
