China is one of Germany's most important trading partners. Relations are strained due to the human rights situation in the country, China's targeted economic expansion in Germany and Russia's support for the Ukraine invasion. Economy and small and medium-sized enterprises warn of a break.
Before Chancellor Olaf Scholz's visit to China, the German automotive industry and small and medium-sized enterprises are warning of the dangers of an economic break with China. "The answer to the crises of our time cannot and must not be a departure from globalization and international cooperation," said the President of the Association of the Automotive Industry (VDA), Hildegard Müller, the newspapers of the "Funke Mediengruppe" according to the preliminary report.
A decoupling from China is not only economically but also geostrategically wrong. "Of course we have to reduce dependencies, but that doesn't mean turning away." The current business with China secures many jobs in Germany. "China is currently supplying us with important raw materials that we do not own and have not secured through alternative trade agreements."
According to the report, medium-sized companies also see China as their most important trading partner for the foreseeable future. "To risk this position right away without a suitable alternative would be foolish and not beneficial in Germany's current economic situation," said the chairman of the Federal Association of Small and Medium-Sized Businesses (BVMW) to the newspapers. "Therefore, the advice can only be not to smash any Chinese porcelain now."
As an export nation, however, Germany must make itself "more independent and more resilient" to individual markets and countries. "To do this, we need significantly more cooperation agreements and bilateral trade agreements with regions where the German economy is not yet sufficiently established and where others are already securing markets, rights and resources. We must not lose any time here." Chancellor Olaf Scholz embarks on a one-day trip to China today.
