Reuters reported on October 14, original title: German corporate executives have conflicts with Berlin in their policy toward China.
Last month, several German business leaders expressed dissatisfaction when they learned that the German Ministry of Economic Affairs would take a series of new measures, including a review of investments in all companies entering China. Sources from the German Ministry of Economic Affairs and business leaders revealed that the investment proposal was quickly put on hold.
Business executives are dissatisfied with the authorities' failure to solicit their opinions because these proposals to reduce the attractiveness of business with China will have a significant impact on German companies. Later they met with German Minister of Economy Habek and objected. This shows people the anxiety of German companies over the government's push to adjust their relations with China. Sources said the executives attending the meeting included the CEOs of chemical giants BASF , Deutsche Bank and Siemens .
Habek said last month that Germany will adopt a tougher policy on trade. Sources said the investment review proposed by the German Ministry of Economic Affairs is to limit certain technology transfers and avoid dependencies in certain areas. "We can only remind Germany not to alienate China," said Marcus Yerge, president of the German Association of Small and Medium Enterprises. The association is an alliance representing more than 900,000 German small and medium enterprises, which form the backbone of , the largest economy in Europe. "It is a wrong approach to interrupt China's activities in the German economy, as the Ministry of Economic Affairs hopes or is trying."
German politicians generally believe that it is necessary to reduce their economic dependence on China. But the business community said the key is how Germany can reduce its dependence on China without causing more harm to the economy facing a recession next year, and does not arouse strong opposition from China.
The German government will release Germany's first China strategic document next year. The German Chancellor of the Social Democratic Party, Scholz , hopes to avoid triggering an American-style Cold War with China. Scholz, who plans to visit China later this year, said: "Decoupling is wrong. We don't have to decouple from some countries. I want to emphasize that we must continue to do business with China." There is no dispute that Berlin wants to take some measures to reduce its dependence on China, such as seeking new sources of key commodities such as rare earth . But other proposals have attracted the attention of the business community. German business community fears that these measures will put them at a competitive disadvantage in the major economy that remains the world's fastest growing.
Reuters reported last month that the German Ministry of Economic Affairs considered restricting exports and investment guarantees, as part of a new strategy toward China. German small and medium-sized enterprises warn that this will deal a severe blow to them — and more severe than those with more financial resources. Business leaders say Berlin should be closer to them regarding any measures against China. Some executives say they are lobbying Berlin to encourage businesses to find new markets rather than trying to curb their business in China. Business leaders worry that even debates about possible policy changes have affected their relationship with China. In 2016, China became Germany's largest single trading partner, accounting for nearly 10% of Germany's 2.6 trillion euros trade volume last year.
(author Andreas Link et al., translated by Qiao Heng)
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