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Germany Unveils New Policy In Response to "Assertive" China
Germany has
published a new policy to address the growing assertiveness of China. The policy
mainly aims to reduce critical dependencies while maintaining engagements in
various fronts.
The strategy also
reflects a balanced approach within the German coalition government by taking
into account both trade interests and concerns regarding human rights as well
as the international order.
- Critical Dependencies,
- Diversify Economic Relations,
- Concerns of Human Rights and Security, and
- To ensure a level playing field for both German and Chinese Companies.
The policy is
explained further.
Germany's Evolving Approach to China:
The policy
represents a significant shift in Germany's approach to China that nearly tends
to be the Kenneth Waltz’s neo-realistic approach.
Germany
acknowledges the changing dynamics and increased assertiveness of the country.
It emphasizes
the need to strike a balance between partnership, competition, and recognition
of China as a systemic rival.
Reducing Critical Dependencies as a key Goal of Policy:
One of the key
goals outlined in the strategy is to reduce critical dependencies on China.
For example, Germany,
being the China's largest trading partner in Europe, acknowledges the
importance of diversifying its economic relations and strengthening its
position in other regions.
Addressing Concerns over Human Rights:
Germany
expresses concern over China's attempts to influence the international order in
line with its single-party system, particularly with regards to human rights.
The new policy
underscores the importance of upholding the rules-based international order and
emphasizes the status of human rights as a foundational principle.
Focus on De-Risking:
Germany aims to
de-risk its economic relationship with China rather than pursuing complete
decoupling.
By reducing
dependencies and creating autonomously controllable value chains, Germany seeks
to minimize geopolitical risks while maintaining economic engagement.
Impact on German Industry:
The new policy
has raised concerns among German industries heavily reliant on the Chinese
market.
Corporations
like Volkswagen and Siemens are the examples that can be quoted here.
These
corporations have outlined growth strategies relying on China, and now they are
urged to diversify their economic partnerships and reduce one-sided
dependencies.
International Security and Economic Espionage:
Germany's
national security strategy, released recently, highlights China's majority of
actions as a threat to international security.
The strategy
identifies economic and scientific espionage, as well as foreign direct
investments, as areas where China poses significant risks.
Germany is the
second country in Europe after Switzerland which has allegedly highlighted increased
Chinese spying activities as a risk.
In June 2023, Swiss
intelligence agency has presented a report in which it mentioned increased
Russian and Chinese espionage activities in the country.
Following European Union's Approach:
Germany's new
policy will be conditionally embedded within the European Union's approach to
China.
This
demonstrates Germany's commitment to aligning with the EU's collective stance
while addressing its specific concerns and interests.
Conclusion:
Germany's
latest policy towards China reflects a realistic but not naive approach,
seeking to navigate the complex dynamics of the partnership while safeguarding
its economic interests, promoting human rights, and upholding the rules-based
international order.
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