China warns Germany against economic protection measures
Published: Tuesday, Apr 16th 2024, 12:11
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Electric cars, batteries, solar cells: Many countries want to protect their markets against cheap goods from China. The products are also causing problems for companies in Germany. But Beijing sees things differently.
China's head of state and party leader Xi Jinping has warned German Chancellor Olaf Scholz against economic protection measures. Germany and China depended on industry and supported free trade, Xi said at the meeting with the Chancellor on Tuesday at the State Guest House in Beijing, according to Chinese sources.
"In this sense, both sides should guard against the rise of protectionism," he continued. According to him, Berlin and Beijing should also look at questions of production capacity objectively from the perspective of economic laws.
Germany wants to reduce dependency
Since the German government presented its China Strategy 2023, the aim has been to reduce dependence on the world's second largest economy in critical economic sectors, thereby also reducing the risk for Germany. Xi has now countered this by saying that cooperation between Germany and China does not represent a risk, but is "a guarantee for the stability of relations". The Chinese politician cited examples of industries traditionally strongly represented in China, such as mechanical engineering and the automotive industry.
Most recently, the focus has been on the accusation that China is using state investments to ensure that Chinese companies produce too much and damage other markets with their cheap goods. Examples include electric cars, which are the subject of an EU anti-subsidy investigation, and the solar industry.
The Swiss solar company Meyer Burger, for example, recently closed its German site in Freiberg - also citing the cheap solar cells from China. However, Beijing sees things differently: China's exports of electric vehicles, lithium batteries and photovoltaic products, for example, have enriched the global supply and contributed to the global response to climate change, Xi said according to Chinese sources.
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