17th April 2024 – (Beijing) Chinese President Xi Jinping’s discussions with German Chancellor Olaf Scholz in Beijing have highlighted a pivotal moment for both nations, emphasising their collaborative potential to foster global stability and prosperity.

During Scholz’s extensive three-day visit, which included stops in major economic hubs like Chongqing and Shanghai, the leaders focused on deepening bilateral relations and exploring new avenues for cooperation. This visit, against a backdrop of complex global challenges, highlighted the essential role that Sino-German relations play in the broader context of international affairs.

The economic interdependence between China and Germany is a cornerstone of their bilateral relationship. As Xi pointed out, the two nations are not just partners but pivotal players in the global supply chain whose cooperation could serve as a stabilising force in an unpredictable world. This relationship is characterised by deep-seated industrial and market interconnections spanning various sectors, from traditional manufacturing and automotive industries to burgeoning fields like digital technology and green energy.

Germany, known for its engineering prowess and robust manufacturing sector, finds a complementary partner in China, with its vast market and cutting-edge technological advancements. This synergy is particularly evident in the electric vehicle (EV) market, where German precision meets Chinese innovation and scale. Contrary to the narrative of risk, this partnership presents a substantial opportunity for both nations to lead on global issues like climate change and technological advancement.

The talks between Xi and Scholz were not limited to bilateral trade and economic issues but also encompassed significant global and regional challenges, including the crisis in Ukraine and tensions in the Middle East. Xi’s advocacy for a balanced and principled approach to international conflicts resonates with Germany’s strategic interests in promoting global stability.

The proactive approach by both leaders in navigating these complex issues highlights their commitment to a multilateral world order and underscores the importance of Sino-German cooperation in mitigating global risks. This collaboration is crucial not only for their own national interests but also for the broader international community, which benefits from the stabilising influence of strong China-Germany relations.

In an era where protectionism is on the rise, both China and Germany stand as champions of free trade and economic globalization. Their joint stance against protectionist policies is a testament to their commitment to keeping global markets open and interconnected. This is particularly important in light of the challenges posed by shifting trade dynamics and the need for resilient supply chains that can withstand global disruptions.

The emphasis on viewing production capacity and trade issues through a market-oriented and global lens is a strategic approach that both countries are keen to advance. By fostering an environment that encourages open trade and cooperation, China and Germany are setting a standard for economic relations that is based on mutual respect and mutual benefit.