Categories: Top News

German Chancellor arrives in China amid trade tensions

German Chancellor arrives in China amid trade tensions

He german chancellor Olaf Scholz came to China on Sunday in a visit focused on the increasingly tense economic relationship between both countries and the differences regarding the Russian invasion of Ukraine.

Scholz’s first destination was the industrial hub of Chongqing, where he and his delegation of ministers and business leaders will visit a company partially financed by Germany and other sites in the big city, which is a production base for the automotive and other industries. from China.

Scholz is also scheduled to visit the financial hub of Shanghai during his three-day visit, before traveling to the capital Beijing to meet with Chinese President Xi Jinping and Premier Li Qiang.

German companies such as BMW and Volkswagen rely heavily on the Chinese market, but Beijing’s support for Russia creates friction with the West.

The German economy has benefited from Chinese demand for investment and manufactured goods, from cars to chemicals, but those ties have frayed amid growing competition from Chinese companies and stricter regulations. Political interference has also been blamed for the sharp decline in foreign investment.

German companies have argued that they face unfair market barriers in China and the government has pushed a “de-risking” policy to reduce dependence on the Chinese market and suppliers.

Despite that, China remained Germany’s top trading partner for the eighth consecutive year in 2023, with $271 billion in goods and services exchanged between the two sides, slightly more than Germany traded with the United States, but a contraction of 15 percent. .5% compared to the previous year. German exports to China totaled $104 billion.

You may also like

  • Germany will change Adidas for Nike from 2027 after 70 years
  • Germany legalizes recreational cannabis consumption, amid controversy

Source: Gestion