Editorial | Time for Germany to see reason and improve relations with China
With Trump and his frequently anti-European rhetoric, Berlin should see the writing on the wall and move away from its hardline stance
As two of the world’s economic powerhouses, Germany and China have much to offer each other. Alas, relations have significantly worsened since the end of the Angela Merkel era. As a key part of the European Union and the US-led Western alliance system, Berlin has taken a hardline stance towards Beijing in recent years.
Russia’s war in Ukraine has diplomatically dragged China onto the wrong side of the EU. China’s dominance in electric vehicles has handicapped Germany’s fabled car industry, leading to accusations of overcapacity against Beijing. Lately, China’s export restrictions on rare earths in response to US President Donald Trump’s tariff war have especially alarmed the Germans. Therefore, there was much for Wadephul to address with his Chinese counterparts, Vice-President Han Zheng and Foreign Minister Wang Yi.
Wadephul raised sticking points during his visit. Both he and Macron have warned against the trade imbalance in favour of China. Wadephul has called for an end to uncertainty over China’s deliveries of rare earths, semiconductors and other commodities, a difficult demand to meet during a trade and tech war.
The once lucrative Sino-German trade has hit a wall with the sharp fall in German exports to China. The country’s overall economy is in the doldrums. Now is the time for Berlin to improve relations, but politics stands in the way. With Trump and his frequently anti-European rhetoric, Germany should see the writing on the wall. Pragmatism has its limits, though, despite Beijing’s pledge on multilateralism and free trade. For now, managing rivalry and resuming high-level dialogue might already be judged as a success after Wadephul’s trip.