Lars Klingbiel’s visit will be the first visit to China by a cabinet minister of the current German government and comes at a sensitive time for Berlin’s most important trading partner.
Chinese export controls, particularly on rare earths, have highlighted the German economy’s heavy dependence on China. For example, the German automotive industry has felt its effects as it faces shortages of critical parts.
The visit comes six months into the tenure of the current government and the Finance Minister and the Chancellor are scheduled to reach Beijing on Monday for high-level talks. Klingbeil will meet his Chinese counterpart as part of the “Financial Dialogue” bilateral talks held regularly every two years.
Foreign Minister started diplomatic dispute
Foreign Minister Johan Waddefull had planned to visit China in late October to address trade issues and other tough topics such as China’s support for Russia in the war against Ukraine. The purpose of his visit was to prepare the ground for the visit of Chancellor Friedrich Merz.
But when it became clear that he would not be meeting any other high-ranking interlocutor other than his Chinese counterpart Wang Yi, the foreign minister canceled the visit at short notice.
Earlier, Wadeful had criticized China’s Indo-Pacific policy as increasingly aggressive. A Chinese Foreign Ministry spokesman also criticized Germany’s position on Taiwan, which Beijing views as a rebel province, and noted Wadefull’s refusal to explicitly disavow the island’s independence activities. However, it is unclear whether China’s decision to confirm only one meeting was directly linked to Germany’s stance on Taiwan.
The Chinese were angered by the cancellation, but later insisted they were still interested in an exchange with the German government.
Klingbeil’s soothing voice
In an interview with the German Press Agency, Klingbiel now sounded cordial. “We should not talk about China, but talk with China,” Klingbeil said. He added, “It is an important international player: there are many problems in this world that we can only solve together with China.”
Like most countries in the world, Germany does not recognize Taiwan as an independent state, but still maintains contacts with the economically powerful island, on whose chip industry many industries around the world, including Germany, depend.
“The Chinese side should also always know that we are following very closely what is happening in Taiwan,” Klingbeil said. He argued, “If military action is taken, it will lead to a different view of China.”
Berlin is still working on China strategy
The new German government has not yet developed its China strategy. The previous centre-left government led by Chancellor Olaf Scholz had set itself the goal of reducing risk, that is, reducing risk and dependence on China. However, little progress was made in this direction.
Recently, there has been a growing awareness of the weakness of the German economy as a result of traumatic experiences such as the “Nexperia supply shock”. In October, the Netherlands acquired Chinese-owned chip maker Nexperia, prompting Beijing to ban some exports and raising fears of a chip shortage in Europe.
On Thursday, the German parliament voted to set up a commission of experts to look into German-Chinese economic relations. The politicians, along with experts from academia and business representatives, are to examine “security-related economic relations between Germany and China” and submit recommendations on what to do. In addition, Chinese investments in critical infrastructure in Germany are also to be reviewed.
When will Merz visit China?
The outcome of Klingbiel’s visit will ultimately determine whether the German Chancellor will visit China in the near future. Merz’s frequent early visits to European allies and the United States have earned him a reputation as a chancellor who makes his presence felt at almost every international forum.
But six months after assuming office, his first visit to China and India is still pending.
This article was originally written in German.
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