German Media: German Economy Minister Reiche Seeks Dialogue in Beijing

German Economy Minister Katherina Reiche is seeking dialogue in Beijing. However, issues concerning rare earths, fair competition, and discussions about the EU strengthening its trade protection tools indicate that this policy of seeking balance still faces considerable challenges.

Minister Reiche’s visit to Beijing vividly illustrates the difficulty Germany faces in pursuing a balanced approach toward China. While emphasizing dialogue, cooperation, and new business opportunities, she also stressed the need to ensure reliable supply chains for rare earth resources and a level playing field for fair competition.

Similar to Chancellor Friedrich Merz’s visit to China earlier this year, Reiche expressed numerous praises during her trip. She remarked that China has developed into one of the world’s most important industrial, technological, and innovation hubs with "astonishing dynamism." The speed at which Beijing advances industrial transformation and technological progress deserves respect. In fields such as robotics, artificial intelligence, renewable energy, and batteries, China holds a leading position internationally.

Continuing the Dialogue Initiated After Merz’s Visit

During a meeting with a vice minister of China’s National Development and Reform Commission (NDRC), Reiche sought to continue the political dialogue initiated during Merz’s visit. She said that “trustful and open exchanges” are “very, very important” to her. Merz had previously held “very good bilateral talks” with Chinese leaders. Referring to the NDRC official’s background in civil engineering, Reiche noted he must be well-versed in structural stability and load-bearing capacity—“and we hope our relationship can be built in exactly such a way.”

While expressing appreciation, Reiche also made clear demands. During meetings with China’s Minister of Commerce and the NDRC vice minister, she addressed core contentious issues. She stated that German companies require secure access to critical minerals and rare earths, saying, “Without these raw materials, modern society and modern technology simply cannot exist.” After the talks, Reiche confirmed she had explored pathways to “establish reliable access channels so our businesses can depend on these resources.”

The Rare Earth Factor

This context is particularly sensitive. Due to trade tensions with the United States, China has imposed export controls on seven rare earth elements and their manufactured magnets. These materials are widely used in automobiles, machinery, electronics, and numerous future technologies.

On the issue of competition, Reiche was unequivocal: “Our companies do not shy away from competition.” German firms are accustomed to excelling under tough conditions. Competition is beneficial—it drives progress for all—but only if it is properly structured and managed to achieve mutual gains.

Welcome to Investment, But Maintain Balance

Reiche also discussed Chinese investments in Germany. She stated that such investments are generally welcome across Germany. However, the key point is that they should not merely aim to establish production facilities in Germany, but rather bring innovation, higher-value manufacturing capabilities, and long-term investment—aiming for a fair and balanced outcome.

The Chinese Minister emphasized different priorities. He pointed out that Germany’s industrial transition could be more closely aligned with China’s “15th Five-Year Plan,” fostering a new, deeper model of coordination and cooperation. At the same time, the Chinese minister criticized EU policies, stating that Brussels has recently introduced a series of economic and trade measures with “clearly protectionist undertones.” Some enterprises have reported to him that these measures have severely impacted cooperation between Chinese and European companies.

Discussion on Trade Protection

The Chinese minister referred to the current EU discussion on strengthening trade protection tools and addressing unfair competition. In response to media questions, Reiche stated that as an export-oriented nation, Germany has two core interests: first, to respond appropriately to unfair competition; second, to ensure that German exports can continue unhindered. “Therefore, we advocate a balanced approach in Brussels”—one that includes effective protection mechanisms while maintaining openness toward exports.

Throughout this visit, Reiche has been accompanied by an economic delegation until Thursday, including CEOs from major German companies such as BASF and ThyssenKrupp. On the second day of her trip, she traveled to Guangzhou, where she visited companies and met with local government representatives.

Miguel Ángel López Borrego, CEO of ThyssenKrupp, said that fair trade remains crucial—but equally important is for Europe to welcome Chinese enterprises into Europe, just as it once welcomed German companies into China.

In an interview with German public broadcaster ZDF on Tuesday, he said: “We received substantial support from China in the past; now I believe that support should similarly flow smoothly in the opposite direction.”

Trade Data

China is Germany’s most important trading partner, yet the relationship remains imbalanced. According to data from Germany’s Federal Statistical Office, bilateral trade volume last year exceeded €250 billion. Of this, Germany imported €170.6 billion from China—a rise of 8.8% year-on-year—while German exports to China declined by 9.7%, falling to €81.3 billion.

Thus, Reiche’s message in Beijing carries a dual meaning: Germany wishes to maintain dialogue with China and does not reject Chinese investment; yet Berlin also demands more reliable access to raw materials, more open supply chains, and a more equitable competitive environment.

Source: DW, based on reports from dpa and Reuters

Original article: toutiao.com/article/1866443716919496/

Disclaimer: This article reflects the personal views of the author