Germany to curb overdependence on China in critical sectors
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China is Germany’s largest trading partner. Bilateral trade between the two countries stood at $335 billion in 2022. But now the situation has changed. The German government has said in its document that China has changed. For these reasons, we also need to change our approach towards China. According to this, China is an important partner of Germany in climate change, epidemic and sustainable development, but it is more concerned about its own interests and is also defying international laws. Germany wants to continue trade and investment with China but wants to diversify its supply chain in critical sectors.
German companies doing business in China
It has been said in the document that China is excessively dependent on China in terms of medical technology and medicines. Also, Germany is completely dependent on China in the matter of IT, semiconductor manufacturing equipment, metals and rare earths. It states that in critical sectors the European Union should not depend on non-EU countries that do not care about our fundamental values. According to this, strict provision will also be made for research and development projects with the government of China.
China is a big market for many German companies. These include Volkswagen (VLKAF) and BMW. The government says it will hold talks with these companies. Companies doing business in China have welcomed the strategy but have expressed some concerns. According to a CNN report, Jens Hildebrandt, executive director of the North China branch of the German Chamber of Commerce, said that most German companies doing business in China have taken measures to reduce risks. However, he said that the paper does not mention how we can strengthen our economy without reducing dependence on China.
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