As German Finance Minister Lars Klingbeil prepares for a visit to China, a wave of cautious optimism and pressing demands is emanating from the German business community. While acknowledging the imperative to mitigate dependencies, German industry leaders are emphatically rejecting any notion of economic withdrawal, emphasizing instead a strategic focus on risk management, market access and constructive dialogue.
Dirk Jandura, President of the German Foreign Trade and Investment Chamber (BGA), argues that decoupling is not the answer. Instead, the German government must prioritize establishing fair competitive conditions and pushing for increased transparency and predictability within the EU-China dialogue. Problematic areas like overcapacity and market distortions must be openly addressed, moving beyond superficial engagement.
Volker Treier, Head of Foreign Trade at the DIHK (German Chamber of Industry and Commerce), sees Klingbeil’s trip as a timely and crucial opportunity for the new German government to cultivate direct, early engagement with Chinese leadership – a necessity given the current geopolitical tensions. He suggests the visit represents a chance to recalibrate economic and trade policies, establishing clear expectations for transparent and reliable procedures. This includes scrutiny of Chinese export controls on critical raw materials and rare earth elements, which German firms say are essential for maintaining supply chain security and competitiveness across vital sectors, from electric vehicle production to medical technology.
Treier stressed the importance of clear communication, advocating for a nuanced approach that acknowledges both challenges and opportunities for German businesses. He emphasizes that participation in international divisions of labor is no longer guaranteed and that market access is now intrinsically linked to political negotiation. Ultimately, German companies are looking to the government to proactively and strategically nurture bilateral relations in the best interests of the German economy. The plea is clear: reliable framework conditions are paramount to avoid escalating bureaucracy impacting essential export processes, visa regulations or investment opportunities.