ECONOMY

Wed 15 Mar 2023 8:10 pm - Jerusalem Time

German chancellor calls for equal trade relations at controversial China summit

BEIJING (AFP) - German Chancellor Olaf Scholz told Chinese leaders in Beijing on Friday that Berlin expects reciprocity in trade exchanges as it looks to boost economic cooperation despite growing mistrust of the Asian superpower in the West.


Schulz is under pressure to push Beijing to take a hard line on Russia over the war in Ukraine, and said Friday that Germany and China had agreed that they opposed any use of nuclear weapons in the conflict.


Schulz is the first among the G7 leaders to visit China since the onset of the Covid-19 pandemic, which has prompted the world's second largest economy to largely close its borders.


The visit sparked controversy, as it comes shortly after Xi strengthened his grip on power and in light of the high level of tension between the West and Beijing over issues starting from the Taiwan file and not ending with human rights violations.


Schulz held talks with human rights lawyers opposed to the regime in Beijing before the trip, according to a source in his accompanying delegation told AFP.


Schulz, who was received by the Chinese president after his arrival in Beijing at the Great Hall of the People, said he seeks to "develop" economic cooperation further, while acknowledging the existence of divergent views on a number of issues.


"It is good that we can exchange views here on all issues, including those that we see from two different perspectives. That is the purpose of the communication," he was quoted by a German government source as saying.


"We also want to discuss how we can develop our economic cooperation on other issues: climate change, food security and heavily indebted countries," he added.


In turn, Xi Jinping stressed the need for China and Germany to work together in times of change and instability and contribute more to world peace and development, as reported by the Xinhua News Agency on the meeting.


Schulz also met with Chinese Premier Li Keqiang at a meeting, in which he called for fair trade between the two countries.


"We do not believe in ideas of severing relations (with China), but it is also clear that this is linked to equal economic relations with reciprocity," he said in a statement.


He urged Beijing to do more to pressure its ally Russia, which has been at war in Ukraine for months.


"I told President (Xi) that it is important for China to use its influence over Russia," Scholz said during a meeting with reporters.


Scholz also called on Russian President Vladimir Putin to extend the grain export agreement from Ukraine.


Both sides have said they oppose the use of nuclear weapons in the conflict, with Schulz telling reporters that "everyone in China knows that an escalation (of the war) will have consequences for all of us."


"That is why it is so important for me to stress that everyone says clearly that escalation with a tactical nuclear weapon is out of the question," he added.


China avoided criticizing Russia over the Ukraine invasion, instead blaming the United States and NATO for the war.


The German delegation, consisting of more than 60 people, was greeted by a military guard on the tarmac at Beijing Airport, in addition to health workers wearing protective suits who conducted corona detection tests in buses converted into mobile laboratories.


Schulz was examined on the plane by a German doctor who came with him under the supervision of officials from the Chinese health sector, according to the German government.


The German and Chinese economies are closely linked. Some in Berlin believe that the relationship is of great importance to Germany, which is witnessing an energy crisis sparked by the Ukraine war, and its economy is heading towards recession.


China provides an important market for German products, from machinery to vehicles made by companies such as Volkswagen, BMW and Mercedes-Benz.


German industries' heavy dependence on China is also facing criticism at a time when Berlin is greatly affected by the repercussions of its overreliance on Russian energy imports, which left it in crisis when Moscow decided to cut supplies.


Commenting on this, opposition lawmaker Norbert Röttgen told the "Rheinisch Post" newspaper that Schulz's approach is still based on the idea that "we want to continue doing business with China, regardless of what that means for our economic dependency and our ability to move."


Figures within the ruling coalition also did not hide their concern about the relationship with China, as Foreign Minister Analina Berbock said that mistakes made in the past with Russia should not be repeated.


The sensitivity of the issue was highlighted when a row erupted last month over whether Chinese shipping giant Cosco should be allowed to buy a stake in a container terminal in the port of Hamburg.


While Schulz refused to heed calls from six ministries to reject the deal over security concerns, the company was instead allowed to buy a smaller stake.


There are concerns that the visit, which takes place after Xi secured a historic third presidential term during the Communist Party Congress last month, may have raised concerns in the United States and the European Union.


"For Beijing, it's less about tangible results and more about the symbolism of the German chancellor coming to Xi's visit shortly after the party congress," said Noah Barkin, associate professor in the Asia program at the German-American Marshall Fund.


"This gives international legitimacy to his term as leader for life and shows that China is not isolated," he added.


But Berlin stresses that it has consulted with its most prominent partners, while Schulz insisted that he was visiting China as a "European" and not just as a German official.


The leader of Europe's largest economic powerhouse defended the visit, stressing that direct talks with Chinese leaders had "become more important" after such talks were halted by the pandemic.


"We will not ignore controversial issues," he said in a press article, while enumerating a series of topics he will raise, including respect for civil liberties and the rights of ethnic minorities in Xinjiang.

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German chancellor calls for equal trade relations at controversial China summit

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