Germany’s Scholz after meeting China’s Li: Talks more crucial than ever

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German Chancellor Olaf Scholz (right) and Chinese Premier Li Qiang at a joint news conference in Berlin, on June 20.

German Chancellor Olaf Scholz (right) and Chinese Premier Li Qiang at a joint news conference in Berlin, on June 20.

PHOTO: BLOOMBERG

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German Chancellor Olaf Scholz said on Tuesday it was

more important than ever to hold direct talks

with China given the pile-up of global crises, but Germany would continue to seek to diversify trade away from Asia’s rising superpower.

Mr Scholz has come under fire for hosting intergovernmental talks in Berlin with

a large Chinese delegation led by Premier Li Qiang

in the first face-to-face summit since the Covid-19 pandemic.

Critics say these are not appropriate any more given growing geopolitical tensions between the West and China. The talks came the same day the European Union’s executive launched a bid to convince the bloc’s 27 member states to agree to stronger controls on exports and outflows of technologies that could be put to military use by rivals like China.

Germany’s domestic intelligence agency also warned in its annual report on Tuesday about a campaign by China to obtain German technology to bolster its military and the risk of increasingly sophisticated cyber-spying operations.

Mr Scholz defended his decision at a joint news conference with Mr Li in Berlin, itself contentious, for not allowing any questions from journalists.

“Direct dialogue, personal talks, a real discussion – all of that is more important than usual in this unusual time full of global challenges and crises,” the Social Democratic Chancellor said.

The pandemic,

which disrupted supply chains worldwide

, showed that Germany also needed to work closely with China on a range of issues including health, Mr Scholz added.

China is willing to work with Germany to take bilateral relations to a new level, said Mr Li, noting the countries signed more than 10 cooperation agreements in areas including advanced manufacturing and environmental protection during his visit.

A third high-level Chinese-German dialogue on global financial matters will take place in Berlin later in the year, Mr Scholz said, noting China had a key role to play in global finance given it was the world’s largest bilateral creditor.

“It allows us to discuss questions directly with one another where we have different opinions and differences,” he added.

The talks come after

a rare visit to Beijing

by United States Secretary of State Antony Blinken, who was seeking to de-escalate US-Chinese tensions. Mr Scholz said he had urged China to exert more influence on Russia over its invasion of Ukraine, and to improve market access and fair competition for German companies in China.

China experts like Mr Noah Barkin at Rhodium Group, however, said the news conference was more notable for what Mr Scholz did not mention – derisking, Taiwan, Xinjiang and Hong Kong – than what it did.

Germany has taken a tougher stance on China over the past year, but China hawks say Berlin is still compromised by its heavy economic reliance on Beijing, with corporate titans lobbying Berlin not to go too far.

China became Germany’s single biggest trade partner in 2016 and is a core market for top German companies including chemical producer BASF and automotive manufacturers Volkswagen and BMW.

Companies, not governments, should take the lead on managing risk, Mr Li told a meeting of top German chief executives on Monday, according to the official Xinhua news agency.

Mr Li’s four-day visit to Germany is his first official trip abroad since becoming premier, reflecting the importance of the ties between Asia and Europe’s largest economies. He was set to attend the German-China business forum on Tuesday afternoon, before heading in the evening to Munich.

A spokesman for Siemens confirmed the Chinese delegation would meet Siemens chief executive Roland Busch in Munich on Wednesday.

The Munich tour will also include BMW and its chief executive Oliver Zipse, two people with knowledge of the plans said. BMW owns a majority in BMW Brilliance Automotive, its Chinese joint venture with Brilliance Auto Group.

Mr Li will then head to Paris for an official visit and to attend a financial conference on Thursday and Friday. REUTERS

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