German and Chinese flags: The relationship between China and Germany is changing.
(Photo: dpa)
The federal government is working flat out on a new China strategy – it is essential that this takes the new realities into account. Beijing’s priorities have changed completely under head of state and party leader Xi Jinping. The focus is no longer on economic growth, but on ideological goals: zero Covid, internal and external security – and also the dogma of non-interference in China’s “internal affairs”, especially in human rights violations, have a new, even more important status.
And: the “reunification” of China with Taiwan. Some believe that a Chinese attack on the island is only a matter of time. A military conflict between the USA and China could be the result – with catastrophic consequences.
Against this background, Germany and Europe must adapt their rules and principles for dealing with autocracy. The mere fact that the federal government is dealing with the new challenges in dealing with Beijing systematically and across all departments and wants to find a common position is a great step forward.
Three points are now important with regard to the German economy:
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First Germany must set clearer limits for Chinese investments in this country. Beijing is vehemently opposed to this, even though China has been doing this for decades. The German foreign trade law has already been tightened, but the current example of the Port of Hamburg shows that this is not enough.
China has long since revealed its strategic interest in the port by systematically buying into European ports through its state-owned companies. Nevertheless, it cannot be ruled out that the federal government will approve the sale of a stake in the container terminal to the People’s Republic. It would be a mistake. The tendency to make such groundbreaking decisions dependent on current moods or particular interests should come to an end.
Secondly the German economy must systematically review its supply chains and dependencies. For rare earths, a strategic metal, Germany is more than 93 percent dependent on supplies from China.
Wherever there are such dependencies on critical countries, companies have to join forces to reduce them. In some places, the state also has to provide support with investments.
Thirdand in a market economy that is probably the most difficult of the three criteria of a China strategy: The great dependency on China of individual large corporations must be reduced.
Companies like Daimler or VW have tied themselves dangerously close to an autocratic system. Because it cannot be ruled out that the consequences of a total failure of your China business – for example in the case of a war over Taiwan – would also cause high costs for the German economy, it is not just a business decision if this high level of commitment is maintained. The limitation of investment guarantees, as is being discussed in the Ministry of Economics, is a first signal, but should not prevent large corporations from continuing to invest.
In everything, the following applies: the federal government must think and act in a European manner. China has an interest in Europe fragmenting and making itself small. That would not only be fatal in Germany’s interests.
The author is a political correspondent in Berlin. Previously, she was China correspondent for Handelsblatt in Beijing for three years.
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