\"Little Germany.\" That's the nickname for Taicang, a county-level city in China's Jiangsu Province, located about 50km from Shanghai. Home to over 500 German businesses, Taicang exemplifies the deep economic and cultural integration between Germany and China, making German activities, cuisine, and culture integral to local life.
Economics, business, and trade are at the heart of China-Germany relations. In 2023, China remained Germany's most important trading partner for the eighth consecutive year, according to the German Federal Statistical Office. German direct investments in China grew by over 4% to a record €11.9 billion ($12.8 billion), matching the total investment from 2015 to 2020 within just three years. Additionally, 78% of German companies in China anticipate consistent growth over the next five years, with 54% planning to increase their investments.
German Chancellor Olaf Scholz's recent visit to China marks his second since taking office, accompanied by representatives from industry giants like Siemens, Bayer, BMW, and Mercedes Benz, as well as key cabinet ministers. This visit underscores the robust collaboration across economic and political sectors, representing all three coalition partners of the German government.
What sets China-Germany relations apart is their mutual economic understanding coupled with political pragmatism. Unlike some Western countries, Germany has maintained an independent stance on China. Under Chancellor Angela Merkel, Germany resisted pressures to impose a full ban on Huawei, and Chancellor Scholz continues this approach. Despite Western criticism, Scholz was the first EU leader to visit China post the 20th Party Congress in 2022 and the first Western leader to do so since the COVID-19 pandemic began.
Scholz's pragmatic approach is also evident in his recent opening of a TikTok account shortly before his China visit, reflecting an understanding of digital engagement's role in modern diplomacy.
Amidst the EU's decision to investigate Chinese electric vehicle subsidies, Chancellor Scholz emphasized Germany's commitment to free trade by stating, \"We want to sell our cars…But this means that we are open to get the cars of other countries also on the market of Germany.\" Despite the automotive industry accounting for around 5% of Germany's GDP and 17% of its exports, Scholz rejected protectionist measures, highlighting Germany's dedication to open markets.
Former Vice President of Bundestag Hans-Peter Friedrich highlighted areas of cooperation beyond trade, including carbon dioxide reduction, climate protection, tourism, and the circular economy. \"Germany and China complement each other very well,\" he said, expressing optimism for continued collaboration.
Germany maintains its independent China policy, balancing internal political differences and coalition dynamics. Despite some factions within the government advocating for a harder line, Germany's leaders have consistently sought cooperation and pragmatic engagement with China. This persistent approach has cemented the robust and dynamic China-Germany relationship.
Reference(s):
cgtn.com
