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 document and state-subsidised industrial coverage, the 2 international locations stay certain by an unlimited and mutually advantageous business relationship.
China purchased US$95 billion price of German items final yr, round 12 per cent of which have been vehicles, Chinese language information exhibits, placing it among the many US$19 trillion financial 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 associate, having injected US$6.6 billion in recent capital in 2024, in keeping with information from the Mercator Institute for China Research. This accounts for 45 per cent of all international direct funding into China from the European Union and the UK.
Li stated he “hoped Germany would keep a rational and pragmatic coverage towards China, (and) eradicate interference and stress”, 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 nearly 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 going through rising stress from home rivals.
“China is keen to work with Germany to grab future improvement alternatives … in rising fields resembling new vitality, good manufacturing, biomedicine, hydrogen vitality know-how, and clever driving,” Li stated.
