Busch warned that Europe must strengthen its own competitiveness and technological sovereignty over a common economic policy. When it comes to key technologies such as hydrogen, semiconductors, artificial intelligence and quantum computers, the European economy must not lose touch and become technologically dependent. “There is no political sovereignty without technological sovereignty,” he emphasized at the “Asia Business Insights” conference, an event organized by Handelsblatt and Bank HSBC.
No country in the world can claim today that it can exist from other countries without technology. “Complete decoupling would definitely bring an economic recession worse than the aftermath of the pandemic,” he said. Nobody wants to risk that.
Mr Busch, you have been President of the Asia-Pacific Committee of German Business since mid-October. What are your goals for your term of office?
We are currently experiencing less instead of more cooperation in many areas. Tensions and contrasts increase. It is all the more important to seek and strengthen the dialogue now. As Europeans, we have to throw all our weight into the scales in order to prevent new blocks and new dividing lines in the Asia-Pacific region.
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And that at a time when the region is more important to the German economy than ever before.
That’s the way it is. Around four billion people live in Asia, a good half of humanity. And in the next few years, the region will generate more than half of global economic growth, but also over half of global CO2 emissions. We can only find answers to the enormous challenges of our time, whether climate protection, digitization, pandemics or demographics, together with the countries of the Asia-Pacific region and, in particular, with China.
Which priorities do you see in the cooperation?
Firstly, a constructive economic policy towards or even better with China, secondly, deepening partnerships with all countries in the Asia-Pacific region, and thirdly, a clear and pragmatic economic and industrial policy that ensures that Europe remains an attractive and relevant partner in the region .
How should the new federal government position itself in view of the increasing conflict between China and the USA?
We should set our own agenda so that we don’t become the plaything between China and the USA, which are currently claiming leadership – politically, economically and technologically. If we clearly state what we want to achieve for Germany and Europe, we can enter into an exchange in a completely different way. It is important to maintain the dialogue. Because we are very dependent on each other. You can see that in the current delivery problems from which everyone is suffering.
Do not get into technological dependencies
The USA and China are trying to reduce mutual dependencies, keyword decoupling. How great are the risks for the German economy, which is so dependent on foreign trade?
Above all, the European Union must act as one. And we need a pragmatic economic policy and more of the strategic consistency, as shown, for example, by China and the United States.
What do you mean by that specifically?
This applies particularly to the development of key technologies such as hydrogen, semiconductors, artificial intelligence, the Internet of Things, Industry 4.0 and quantum computers. We must not get into technological dependencies here. There is no political sovereignty without technological sovereignty.
When it comes to key technologies such as hydrogen, the EU should not become technologically dependent.
(Photo: dpa)
What do you want from German and European politics?
The national and European reconstruction programs and the European Green Deal already provide a strong impetus for future investments for digital and sustainable innovation. We now have to start the strategic coordination between industry, climate, competition and research policy. The common goal must be to remain or become a technology leader. In the best tradition of the social market economy, we should understand openness and competition as strengths, not weaknesses. We must unleash these forces again in Europe.
Is that enough to survive between the US and China?
That can only succeed if we as Europe speak with one voice – and play at the forefront of technology. There are a lot of technologies that come from Europe, like machines for making semiconductors. Without this, the lights will go out for semiconductor companies and all of their customers in two to three years because they cannot upgrade to the next generation of chips.
Localization trend
Global supply chains have stalled since the pandemic. Are we experiencing an end to globalization?
We are actually seeing a trend towards localization, i.e. local development and production for local markets. But that doesn’t mean an end to globalization. Basically, there is also something positive about the mutual dependencies, because they make it clear to us that we can only achieve the goals together. Just as we can only reduce CO2 consumption together. No country in the world can say today that it can exist from other countries without technology. Complete decoupling would definitely bring an economic recession worse than the aftermath of the pandemic. Nobody wants to risk that.
The dialogue with China fails more and more frequently on the subject of human rights. New regulations in this country such as the Supply Chain Act require companies to respect global standards of labor and human rights. What role will the topic play for you as the new chairman of the Asia-Pacific Committee of German Business?
This is primarily a political issue. Values and attitudes that contradict one another must primarily be discussed at the political level and not delegated to economic actors.
Conflicting values and attitudes with regard to human rights would have to be discussed primarily on a political level.
(Photo: obs)
But companies can also afford a moral compass.
Very right. Companies have to live their values confidently and naturally. We must not tolerate violations of this in business with other companies and in our supply chains – nowhere in the world.
However, these contradicting attitudes, specifically China’s dealings with the Uyghur minority, have also resulted in the investment agreement being put on hold at the moment. How should it go on with that?
Rapid ratification of the EU-China investment agreement would be very desirable. But it is also important to me that we not only look at China, but also take a broader view of Asia and also include the other Asian countries in strategic considerations. We urgently need to finalize the negotiations on the free trade agreement with Australia, New Zealand and Indonesia.
Step on the gas with technologies
How does the German economy deal with the fact that Chinese companies are increasingly attacking in important high-tech fields, possibly with unfair methods?
In Germany and Europe, we have to focus on which technologies we want to be at the forefront – and really step on the gas there. Because the best answer to this innovation race is: innovate faster and play our strengths.
Which technologies are particularly important to you here?
Our opportunities lie, among other things, in the industrial Internet of Things or Industry 4.0, in artificial intelligence, digital infrastructure and networking in the “cloud” or directly in manufacturing and quantum computing. But also with topics such as green hydrogen and green fuels that are obtained from it. Innovations in health care or in mechanical engineering are also fields in which we have an excellent starting position that needs to be defended.
Protocol: Sabine Gusbeth
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