Chinese President Xi Jinping and German Chancellor Olaf Scholz recently held a discussion over video call, acknowledging the improving relations between their countries. The talks took place at a time when the European Union (EU) is working towards reducing its reliance on China, the world’s second-largest economy.
President Xi stated that China sees Europe as a comprehensive strategic partner and an important player in a multipolar world. He expressed the hope that Germany would push the EU to uphold principles of marketization and fairness, working together with China to protect fair market competition and free trade. President Xi also mentioned new policies aimed at attracting foreign investment in China, including lifting restrictions on foreign investment access in the manufacturing sector and further opening up cross-border service trade and investment.
Tensions between China and the EU have been growing due to issues such as China’s increasing relationship with Russia and its unfair trade practices. China is currently the EU’s second-largest trading partner, but the EU has been vocal about reducing its political and economic exposure to the country. In September, the European Commission initiated an investigation into Chinese electric vehicle imports, citing potential unfair benefits from state subsidies. The findings of this investigation could impact not only Chinese electric vehicles but also foreign electric vehicles manufactured in China, such as Tesla and BMW.
However, Germany, as Europe’s largest economy, has maintained a relatively friendly relationship with China compared to some other EU countries, primarily due to their significant bilateral trade volume. Chancellor Scholz was the first European leader to visit Beijing after President Xi began his third term in office. President Xi emphasized this close relationship during their meeting, referring to both countries as responsible major powers that should develop bilateral relations and set an example of win-win cooperation.
The leaders also discussed the current global situation, including the conflict in Gaza and Russia’s invasion of Ukraine. President Xi emphasized the need for China and Germany to safeguard the international order and multilateralism, working together to address global challenges. The leaders have previously condemned threats of using nuclear weapons during the escalation of the Ukraine-Russia conflict. Amid ongoing events such as Russia’s revocation of its ratification of the nuclear test ban treaty and Israel’s bombardment of Gaza, President Xi highlighted the importance of addressing the root causes of conflicts and promoting a balanced, effective, and sustainable security architecture.