In the heart of China’s Jiangsu Province lies Taicang, a county-level city affectionately known as “Little Germany.” Situated just 50 kilometers from Shanghai, Taicang has become a central hub for German businesses since the early 1990s. Today, over 500 German companies call Taicang home, weaving German activities, cuisine, and culture into the fabric of local life.
This deep-rooted economic connection exemplifies the robust ties between China and Germany. According to the German Federal Statistical Office, China has been Germany’s most important trading partner for eight consecutive years as of 2023. The German Economic Institute reports that in 2023, German direct investments in China reached a record 11.9 billion euros ($12.8 billion), marking a more than 4 percent increase. Remarkably, in the last three years, German companies have invested as much in China as they did from 2015 to 2020. Furthermore, a report by the German Chamber of Commerce in China indicates that 78 percent of German companies in China anticipate consistent growth over the next five years, with 54 percent planning to increase their investments.
German Chancellor Olaf Scholz’s visits to China underscore this enduring relationship. In 2022, he became the first European Union leader to visit China after the 20th Party Congress and the first Western leader to visit since the onset of the COVID-19 pandemic. Accompanied by representatives from 12 major German businesses, his commitment to fostering economic ties was clear. His most recent trip included industry giants like Siemens, Bayer, BMW, and Mercedes-Benz, along with three cabinet ministers representing all coalition government partners.
What distinguishes China-Germany relations is not just economic interdependence but also political pragmatism. Germany has charted its own course in its China policy, often displaying independence from broader Western strategies. For instance, under former Chancellor Angela Merkel, Germany resisted pressure to impose a full ban on Huawei technologies. Chancellor Scholz continues this pragmatic approach, emphasizing open markets and cooperation.
When the European Commission announced an anti-subsidy investigation into electric vehicles from China, Chancellor Scholz responded by affirming Germany’s openness. “We want to sell our cars… but this means that we are open to get the cars of other countries also on the market of Germany,” he stated. “We are not working protectionists.”
Hans-Peter Friedrich, former Vice President of the Bundestag, highlighted the complementary nature of China-Germany cooperation. “We have important cooperation in the area of carbon dioxide reduction and climate protection. I think Germany and China complement each other very well,” he said. “There are many areas where we can work together… I am optimistic that this will continue.”
Despite internal debates and differing viewpoints within Germany’s coalition government, the country has maintained an independent and pragmatic approach towards China. This persistence in seeking mutual cooperation has been the cornerstone of China-Germany relations. As global dynamics continue to evolve, the strong foundation built on mutual understanding and respect positions both nations to navigate future challenges together.
Reference(s):
cgtn.com
