GERMANY: The German cabinet will finally adopt its long-promised China strategy on Thursday after Chancellor Olaf Scholz’s administration last year mandated a review of Germany’s relations with its largest trading partner, according to reports.
Germany’s cabinet is expected to approve its China strategy on Thursday after Chancellor Olaf Scholz ordered a study on its relationship with China.
In contrast to decoupling from the Chinese market, Scholz has underlined the importance of “de-risking” Germany’s relationship with China, which Berlin perceives as a competitor and strategic opponent that is becoming more assertive.
The three-party coalition’s policy differences caused a delay in the plan’s execution. Greens, controlling foreign and economy ministries, supported restrained economic relations.
To protect sensitive technology and know-how, reforms include export restrictions and investment screening for German businesses in China.
The VDMA engineering industry association in Germany emphasized the importance of no interference in export business or isolation from China. The association expects to maintain current export promotion tools, diversify markets, and modify export controls.
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