Germany adopts first China strategy

The strategy, published on the German Foreign Ministry website, says China has changed and Germany needs to adjust its approach as a result. After enjoying strong economic growth over the past few decades, Beijing is now pursuing an economic policy “aimed at making itself less dependent on other countries, while at the same time trying to make other countries more dependent on China,” the document says.

While Germany is not seeking to distance itself from Beijing, “risk mitigation is essential,” the 40-page English version of the strategy states. The document cites Germany’s past dependence on Russia as a major energy supplier and the need to avoid such a situation with other countries in sectors critical to the energy transition or technological innovation. “Our top priority is to mitigate such risks quickly at an acceptable cost to the German economy,” the strategy emphasizes.

Germany relies on China in a number of areas, including various rare earth metals and elements, medical technology and pharmaceuticals, as well as information technology and products needed to produce semiconductors, the document says. Germany aims to expand its technological capabilities and diversify its supply chains. The strategy describes “risk mitigation” as “a practical complement to our real strengths, namely the openness of our political, economic and social systems.” China is Germany’s largest trading partner, with bilateral trade hitting a record 300 billion euros ($337 billion) last year. The strategy describes China as both “a partner, a competitor and a systemic rival.” Despite concerns, Berlin plans to further strengthen cooperation with Beijing, which remains an “indispensable partner” in areas such as mitigating the impact of climate change, food security and resolving the international debt crisis./.