Reference News Network, November 14 report: According to AFP, November 12 report, BASF Group CEO Martin Brudermüller emphasized on the 12th that Germany must break the "strong suspicion" toward China, and Chancellor Merkel should strengthen economic ties with Beijing.

Brudermüller told AFP journalists during a roundtable meeting with reporters: "China can help Europe improve in many ways without making us dependent on ourselves."

The report said that this world's largest chemical company is increasingly turning its attention to the Chinese market to cope with the European industry crisis, where demand is weak and energy prices are high.

Last week, the core facilities of BASF's integrated base in Zhanjiang, a southern Chinese city, were put into operation, which is the group's largest single investment so far.

"If you want to be a growing company in the chemical industry, you must develop in China," Brudermüller said.

"I will always advocate that the government seek good working relations with Beijing," he added. The cabinet led by conservative Prime Minister Merkel has not yet had any minister visit China.

The report said that Brudermüller called for a "more balanced view" of China.

Another report from the website of Frankfurter Allgemeine Zeitung on November 12 stated that Swiss specialty chemicals manufacturer Clariant announced large-scale investments in China. The company invested about 86 million euros (1 euro is approximately 8.22 yuan — note from this site) in its latest expansion in China. In addition, Clariant also announced the establishment of a production base in cooperation with Fuhua Tongda Chemical Co., Ltd., a Chinese chemical enterprise, to develop new flame retardants.

The report said that Clariant's CEO, Thomas Schmall, rejected the notion that reliance on China is a "problem." He said, "I don't think we need to worry that China will stop supplying us with batteries or raw materials. China is pursuing a harmonious model." He believes that China's export restrictions on key raw materials are "a response to the sudden unilateral high tariffs imposed by the United States."

The report said that Schmall called on Europe to reconsider its policy toward China. He said, "We must be careful not to be swept up by anti-China rhetoric. Europe must take its own path and do business with both the United States and China."

Schmall attributed the relocation of the chemical industry out of Europe and Clariant's investment in China to geopolitical factors, trade wars, the impact of the pandemic, and the cost comparison between China and Europe.

The report said that the tariff war between the United States and China has forced companies to produce in China in order to supply Chinese customers. He said, "The conclusion is that companies that do not produce in China are no longer competitive." (Translated by Lin Xiaoxuan, Nie Litan)

BASF (Guangdong) Integrated Base built by BASF Group in Zhanjiang, Guangdong (Xinhua News Agency photo)

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