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Relations between the United States and China are at a low point. The two countries’ military aircraft have come dangerously close to each other over the South China Sea. Export restrictions are escalating into an economic war.
All the more reason for the world to look forward to the face-to-face meeting between China’s head of state and party leader Xi Jinping and US President Joe Biden in San Francisco. Even if international expectations of the summit are rather modest, as Berlin political scientist Hanns Maull says.The expert on international order issues told DW the resumption of talks between Beijing and Washington was overdue. “But that says nothing at all about whether the summit will succeed in making progress on the serious conflict issues that are at the root of the tensions between China and the US. Most observers doubt this,” Maull explains.
Political scientist Josef Braml sees the US and China already “in the middle of a Cold War 2.0″. His concern: “This economic war could squander the last chance of cooperation to curb climate change and avert the climate catastrophe and could lead to a hot war.”
Energy transition relies on China
This is also due to the fact that many products Germany needs for climate protection and energy transition are made in China. Whether it’s photovoltaics, battery technology or electromobility — hardly anything in the field of renewable energies would work without Chinese preliminary or end products.
Braml said this is especially the case for Germany: “We have embarked on a bold experiment: Get out of fossil fuels, shut down nuclear power and boost renewables. That’s why we are heavily dependent on China,” he explained.
Overall, the tensions between Washington and Beijing are putting Berlin in a difficult situation: It finds itself stuck between the US, its most important political and military ally, and China, Germany’s largest trading partner.
In preparation of this balancing act, the German government adopted a “China strategy” in July 2023 after a long and acrimonious debate. “China has changed. This fact and China’s political decisions make it necessary to change the way we deal with China,” reads the beginning of the text, which describes China as a “partner, competitor and strategic rival.”
A key component of the strategy is to reduce Germany’s dependence on China under the label “de-risking.” The idea is to make sure that German companies become more involved in other countries and regions in order to spread and thus reduce risks.
In an initial reaction, Beijing Foreign Ministry spokesperson Wang Wenbin described the China strategy as counterproductive. “It only exacerbates the division of the world,” he said.
A statement from the Chinese embassy in Berlin read: “China is Germany’s partner in overcoming challenges and not an adversary”. It goes on to say that it is not in the interests of either country to view China as a competitor and systemic rival, an assessment it refers to as “unrealistic.”
Berlin between a rock and a hard place
Beijing was irritated when German Foreign Minister Annalena Baerbockdescribed the Chinese Head of State Xi Jinping as a dictator in an interview with US television station Fox at the beginning of September. China’s Foreign Ministry refuted the statement as “absurd” and a “provocation.”
There was also criticism in Berlin. Jürgen Hardt, the foreign policy spokesman for the opposition CDU/CSU in parliament, told DW at the time that “when someone makes such a statement as a diplomat or foreign minister, then one has to know that a political price will have to be paid. And the question is whether it was worth the price.”
In the analysis of political scientist Gu Xuewu, that price was a substantial erosion of trust among the Chinese leadership, especially toward Baerbock’s Green Party.
Germany’s inner conflict, as it is sandwiched between the US and China, is also reflected in Germany’s governing coalition: While Foreign Minister Baerbock and Economy Minister Robert Habeck — both from the Green Party – call for a tougher line toward China, Chancellor Olaf Scholz (a Social Democrat) is making sure that the China Strategy and de-risking are not implemented too restrictively. After all, German companies invested some 10.3 billion euros in China in the first half of 2023 alone.
Just one example from the many fields in which Germany’s internal conflict between security- and economic interests is being waged is that of communications technology.
At the first NATO cyber defense conference in Berlin’s Foreign Office in early November, NATO Secretary General Jens Stoltenberg called on alliance members to stay away from components made by Chinese producers Huawei and ZTE. We must “avoid relying on equipment supplied by authoritarian regimes to build our digital backbone for the future,” Stoltenberg said. Washington has long been issuing the same warning.
Yet German mobile communications providers continue to use Huawei components in expanding the country’s 5G network, without Germany’s government having stepped in. Chinese products account for an estimated 60% of Germany’s 5G network.
Challenge for Germany and Europe
Hanns W. Maull characterizes Germany’s high-wire act between Beijing and Washington as “very challenging.” The Senior Fellow at the influential Berlin think tanks SWP and Merics also widens the scope. “It is not just a German situation or position, but a European one.”
And because the European Union is a significant actor in international trade relations, “as a part of the EU, Germany has weight and is in a position to exercise a certain influence on the US, China and the international order,” Maull says.
However, he is also certain that “there can be no equidistance between the two poles.” The US is Germany’s natural ally, he says. But in the struggle between the US and China for global primacy, Hanns Maull also identifies one German core interest: “To contain the possibly catastrophic collateral damage that could result from this rivalry over supremacy in the international order.”
This article was originally written in German.
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