Yesterday, three days of diplomatic maneuvers conducted by German Prime Minister Olaf Scholz in China ended. The Asian giant promoted business with its main trading partner while criticizing its huge exports and encouraged German businessmen to deepen ties without neglecting the European strategy of de-risking or reducing economic dependence on China. Schultz is already accustomed to arriving at the Levantine port. If the task was not to make the speech too squeaky, then it has been accomplished.
Chinese President Xi Jinping received Schulz at the Diaoyutai Guest House, a harmonious complex of villas and lakes in central Beijing that has served as the stage for international summits for decades. He plans to speak with Premier Li Qiang later. In previous days, he visited the most prominent German companies in Chongqing, the major inland city, and Shanghai, the Chinese financial heart, which confirms the economic profile of the visit. Xi said that the supply chains and industries of the two countries are closely linked and their markets are interconnected. “We must see and develop bilateral relations in a comprehensive manner and from a long-term strategic perspective,” he recommended, in a subtle reference to the current turbulent context.
On the table was the latest high-profile issue: what Brussels and Washington call Chinese spare capacity and what Beijing considers to be nothing more than the export of a lifetime. The first sees China flooding the world with electric cars and solar panels at unbeatable prices thanks to subsidies. Answer the second one that their products succeed because they are competitive.
Fair competition
Assuming that Chinese cars are inevitable in Europe, Schulz emphasized fair competition. “In other words, there should be no dumping, no overproduction, and no violations of intellectual property rights,” he explained. Xi has defended Chinese exports in areas he dominates because no other country has invested so much money in the face of such a backlash. “Electric vehicles, lithium batteries and Chinese photovoltaic products […] They have contributed a lot to the response to climate change and the green transition.
“Infuriatingly humble social media buff. Twitter advocate. Writer. Internet nerd.”
