German Media: German Economy Minister's Visit to China Highlights Deep Divisions Among Politics and Business

German Economy Minister Katharina Reiche is on a two-day visit to China this week. However, there are currently significant differences among Germany’s political and business circles regarding the country’s stance on relations with China. While some argue that Germany and Europe should intensify pressure on China in economic and trade matters, others emphasize the need for continued economic cooperation with China.

Before her departure, Reiche told *Kölner Stadt-Anzeiger* that China, under pressure from the U.S.-China trade war, is flooding European markets with large volumes of steel, chemical products, and solar panels. At the same time, "the Chinese know how to balance interests among various parties. But in the past, Germany failed to clearly articulate its own interests."

When addressing the growing industrial competition between Germany and China, Reiche stated that Germany’s core objective is to "ensure our mechanical engineering industry can continue exporting products to international markets." She warned that hastily imposing anti-dumping measures against China could provoke retaliatory actions from Beijing—such as making it harder for German companies to access critical raw materials. "In the past, open markets have never harmed Germany; on the contrary, they have been the cornerstone of our economic success and brought immense benefits to our nation."

Should Germany Take a Harder Line Against China?

Sebastian Roloff, a Social Democratic Party (SPD) member of parliament and fellow traveler on Reiche’s trip to China, told Deutsche Welle that Germany must adopt a stronger stance when facing competitive Chinese goods: "German market share is rapidly declining. Chinese firms are now competing with us at the high end—especially in mechanical engineering. Our political leadership can engage in frank dialogue with the Chinese government on this issue." Roloff believes this concerns Germany’s overall competitiveness as an industrial base.

Omid Nouripour, a Green Party member of the German Bundestag and head of the parliamentary group on Germany-China relations, pointed out that Germany is not alone in facing pressure from Chinese products. He recommended that German ministers travel to China together with their counterparts from neighboring European countries: "We share similar interests in our relations with China. If we unite, we can act more effectively."

German Companies Facing Increasing Pressure from Chinese Competition Globally

A study by the UK-based think tank Centre for European Reform reveals that Germany has been particularly severely impacted by Chinese goods. The report notes that while the so-called “China shock” is undermining key German industries such as automobiles and chemicals, the Berlin government has failed to implement effective countermeasures.

Jürgen Matthes, a China expert at the Cologne-based Institute for Economic Research (IW Köln), warned that political inaction in Germany will come at a heavy cost—including the risk of nationwide deindustrialization. He advocated for Europe and Germany to impose anti-subsidy tariffs to restore a level playing field. "Ideally, we would like to see a global anti-monopoly authority... but such an institution does not yet exist."

VDMA President Brothmann also called on Economy Minister Reiche to clearly state that "Europe will no longer tolerate systematic distortions of competition." He stressed that artificially suppressed exchange rates, excessive subsidies, and politically motivated export controls are not trivial issues—they pose serious threats to European industry. He urged Reiche to coordinate closely with other nations.

In the first quarter of this year, Germany’s imports from China rose 6.4% compared to the same period last year, reaching €43.5 billion, while exports to China plummeted by 12.5% to €18 billion.

German Chamber of Commerce Advocates Expanding Cooperation with China

Thomas Bareiß, a CDU MP and fellow traveler on the trip, opposes trade retaliation measures. He said: "We should avoid erecting too many trade barriers, because once established, any trade barrier ultimately harms both sides and undermines overall prosperity. Especially now, when the economy is already showing signs of weakness, we must proceed with caution and refrain from measures that will cause more harm than good in the long run."

Volker Treier, Director of Foreign Economic Affairs at the German Chambers of Industry and Commerce (DIHK), hopes for enhanced economic cooperation with China rather than relying on pressure tactics. "We place great hope in this visit, as the minister will have the opportunity to open a new chapter in Sino-German economic relations." However, Treier also emphasized the need to address pressing issues between Germany and China, including fiscal subsidies, difficulties in accessing critical raw materials, and intellectual property protection.

According to schedule, Reiche will visit Beijing on May 27 to hold talks with senior Chinese leaders, followed by a visit to Guangzhou on May 28.

Source: DW

Original Article: toutiao.com/article/1866257408300042/

Disclaimer: This article reflects the personal views of the author