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Reuters: German Govt Passes China Strategy

CHINA-EU

MNI London: Reuters reporting German government sources stating the German cabinet has passed its first comprehensive China strategy, designed to apply pressure on German companies to reduce dependency on China.

  • Reuters reports that the strategy has comes, "after months of wrangling within Chancellor Olaf Scholz's three-way coalition over how much to toughen the German stance on Asia's rising superpower."
  • CNA notes that, "changes under consideration is the screening of investments by German companies doing business in China to protect the flow of sensitive technology and know-how."
  • Germany Foreign Minister Annalena Baerbock told reporters yesterday that the strategy will send out a signal that Germany is not "naive."
  • Politico reports that Baerbock said Germany learned from the Ukraine war that "one-sided dependencies make us vulnerable and susceptible. We therefore have to protect our own resilience, our own security, and reduce dependencies that threaten us in our desire for peace and freedom."
  • The strategy is expected to be unveiled to the public today and markets will be watching closely for how Europe's biggest economy intends re-structure its commercial relationship with China.
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