German Chancellor to Kick Off China Visit This Weekend Amid Trade Row

German Chancellor Olaf Scholz is set to visit China from Sunday to Tuesday, aiming to strengthen the bilateral relationship between Germany and China amidst ongoing tensions over economic policies and trade practices [para. 1][para. 2]. This visit, which marks his second trip to China as Chancellor, comes at a crucial time when both nations are navigating complex global dynamics and their own strategic interests [para. 1].

During his visit, Scholz will meet with Chinese President Xi Jinping and Premier Li Qiang. The discussions are expected to cover a wide range of topics including bilateral relations and issues of mutual interest such as new-energy vehicles (NEVs), cross-border data transfers, government procurement practices, and notably, China's industrial overcapacity [para. 2][para. 3][para. 6]. These talks are particularly significant as they follow Germany's recent strategy adjustment in July aimed at reducing its economic dependency on China by "de-risking" its trade relationships [para. 5].

This year also commemorates the 10th anniversary of the comprehensive strategic partnership between Germany and China. Both countries have expressed a readiness to use this occasion not only to enhance mutual understanding and trust but also to deepen practical cooperation based on principles of mutual respect, equality, and mutual benefits [para. 4]. Furthermore, they aim to seek common ground while addressing differences in order to advance bilateral relations and contribute towards global peace and prosperity [para. 4].

The context of Scholz’s visit is further complicated by the European Union's increasing scrutiny of Chinese businesses within its borders. Recently, the EU has initiated several probes into subsidies provided to Chinese firms in sectors like solar manufacturing and wind turbine supplies. These investigations could potentially lead to additional tariffs on Chinese goods entering Europe—a move that Beijing has criticized as protectionist [para. 7][para. 8].

In response to these challenges, both German business leaders and industry associations have voiced their concerns. Notably, the German Chamber of Commerce has opposed any increase in tariffs on Chinese electric cars—a sentiment echoed by major German automakers who rarely take a public stance against regulatory measures affecting trade with China [para. 9].

Despite these tensions, German direct investment in China grew by 4.3% last year reaching a record 11.9 billion euros ($12.7 billion). This indicates that German companies continue to see value in engaging with the world’s second-largest economy despite existing trade frictions [para. 10].

Scholz’s itinerary includes stops in Chongqing and Shanghai before heading to Beijing. In these cities, he plans to tour facilities involved in sustainable technologies such as hydrogen drives and green plastics production—highlighting areas where Germany seeks deeper cooperation with China [para. 11]. Accompanying him on this trip are key federal ministers from environment, agriculture, transportation sectors along with top executives from leading German corporations like Siemens, Mercedes-Benz, BMW, and Merck KGaA. This delegation underscores Berlin’s commitment towards fostering multifaceted collaborations with Beijing across various industries [para. 12].

Overall, Chancellor Scholz's visit represents an important diplomatic endeavor aimed at navigating through current economic strains while seeking avenues for future cooperation that align with both nations' long-term strategic goals.