Germany Formulates a New Trade Policy with Communist China, Pledging to Be No Longer Naive

On the Employers’ Day of the Confederation of German Employers Associations (BDA) in Berlin, German Minister for Economic Affairs and Climate Action Robert Habeck stated that the government is working on a new trade policy with Beijing to reduce its reliance on raw materials, batteries, and semiconductors produced in Communist China.

 In a media interview, Habeck said Germany would neither allow Beijing’s protectionism to distort competition nor give up criticism of human rights abuses due to the threat of losing business. The German government would never accept blackmail. Habeck stressed that Germany must open up to new trading partners and regions to prevent many industries’ dependence on exports to Communist China. Germany will be no longer naive in the trade deal between the two countries.

 Habeck did not outline the new measures comprehensively but said that he would review the investments of Communist China in Europe more carefully and offer no support for its Belt and Road initiative. It is reported that the Ministry of Economy is lowering the attractiveness to do business with Beijing. The concrete measures include reducing or even canceling investment and export guarantees to Communist China and no longer promoting trade fairs.

 Sources show that Beijing has been Berlin’s largest trading partner for the past six years, with trade reaching over €245 billion in 2021. Right now, the center-left wing government has taken a tougher stance toward Beijing than its right-wing predecessor since taking the office.