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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.

The policy emphasizes the need to reduce:

• 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.