CHINA-Bilateral Gov't Forum Underway; Follows Hamburg Port Deal

The seventh Sino-German Intergovernmental Consultation is underway in Berlin involving German Chancellor Olaf Scholz, Chinese Premier Li Qiang, senior ministers from both countries and business delegations. The two-day visit has been seen as an effort by Beijing to repair ties with influential EU economies, and given Germany's more dovish historical stance towards close EU-China links Li making Berlin his first foreign destination as premier is seen as a sensible choice.

• The trip has already seen one notable deal finalised, with China's COSCO and the port of Hamburg coming to an agreement related to the sale of a minority stake in a Hamburg Tollerort container terminal to the shipping giant.
• The deal had come under significant scrutiny domestically, with opponents warning of selling a crucial supply chain link to a 'strategic competitor'. The reduction in COSCO's state from a proposed 35% to 24.99% appears to have smoothed the process.
• Speaking to business leaders on 19 June, Li called on businesses rather than gov't to engage in 'derisking' supply chains stating that “Enterprises have the most direct and acute sense of risks and they know how to avoid and handle them. So, enterprises should be given back the leadership role in preventing risks.”