TRADE TIES, TRUMP TENSIONS
For all of the friction over Beijing’s assist for Russia and its actions within the Indo-Pacific, and Berlin’s vocal criticism of China’s human rights report and state-subsidised industrial coverage, the 2 international locations stay sure by an enormous and mutually advantageous business relationship.
China purchased US$95 billion price of German items final 12 months, round 12 per cent of which have been automobiles, Chinese language information reveals, placing it among the many US$19 trillion economic system’s high 10 buying and selling companions. Germany bought US$107 billion of Chinese language items, principally chips and different digital elements.
However Berlin stands out for China as an funding accomplice, having injected US$6.6 billion in recent capital in 2024, in response to information from the Mercator Institute for China Research. This accounts for 45 per cent of all overseas direct funding into China from the European Union and the UK.
Li mentioned he “hoped Germany would preserve a rational and pragmatic coverage towards China, (and) eradicate interference and strain”, throughout their assembly in South Africa, which is internet hosting the primary G20 summit on the continent.
Germany is but to publish a readout of the assembly.
For Germany, China represents a virtually irreplaceable auto market, and is chargeable for virtually a 3rd of German automakers’ gross sales. German chemical compounds and prescription drugs corporations even have a big presence within the nation, though they’re dealing with growing strain from home rivals.
“China is prepared to work with Germany to grab future improvement alternatives … in rising fields resembling new power, good manufacturing, biomedicine, hydrogen power know-how, and clever driving,” Li mentioned.
