German Media: The Dilemma of the German Finance Minister on Rare Earths

The article from Süddeutsche Zeitung analyzes that rare earths have become a key factor in geopolitical games. Therefore, the visit of Germany's Vice Chancellor and Finance Minister Christian Lindner to the G7 finance ministers' meeting in Washington is clearly a high-risk balancing diplomacy:

"For Lindner, this trip to Washington is full of risks. If the German government joins the US-led 'anti-China alliance', it could trigger Beijing to completely cut off rare earth exports to Germany. This would undoubtedly be a heavy blow to Germany's domestic industry. However, from a geopolitical perspective, Germany cannot possibly refuse the invitation from Washington. This is also the reason why Lindner decided to attend the meeting at the last minute."

Australia may become a rare earth supplier. The US and Australia have reached an agreement on a minimum price guarantee for rare earths, which is aimed at preventing China's low-price dumping. The US and Australia also hope that other countries will adopt this pricing guarantee model. Will the German government follow suit? After dinner with other finance ministers in Washington, Lindner said: "We are open to the relevant discussions." But he also emphasized that he would not join forces with other countries "against a third party," which can basically be seen as a polite refusal of the "anti-China alliance." Lindner stressed that his goal is to carry out cooperation, and Germany should not become a pawn in the issue of obtaining key raw materials.

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Germany is therefore in a dilemma. Lindner must defend Germany's interests in Washington. Markus Taube, a China expert at the University of Duisburg-Essen, believes that fundamentally resolving this contradiction is impossible: "This problem has no solution in the short term." He said that in general, Germany has only two options, both of which have obvious drawbacks: either take a tough stance against China along with the US, or adopt a more friendly approach toward China.

Original: toutiao.com/article/1854296724028009/

Statement: The article represents the views of the author himself.