BEIJING – German Chancellor Olaf Scholz arrived in China on Sunday for a visit focused on the sides’ increasingly tense economic relationship and differences over Russia’s invasion of Ukraine.
Scholz’s first destination was the industrial hub of Chongqing, where he and his delegation of ministers and business leaders would visit a company partially financed by Germany and other facilities in the vast city, which is a production base for the automobile and other industries. from China.
Scholz is also expected to visit the financial hub of Shanghai during his three-day visit, before traveling to the capital, Beijing, to meet Chinese leader Xi Jinping and Premier Li Qiang.
German companies such as BMW and Volkswagen are highly dependent on the Chinese market, but Beijing’s support for Russia creates friction with the West.
Germany’s economy has benefited from Chinese demand for investment and manufactured goods, from cars to chemicals, but those ties have frayed in the face of growing competition from Chinese companies and tightening regulations. Political interference was also blamed for the sharp drop in foreign investment.
German companies have argued that they face unfair market barriers in China and the government has pushed for a “de-risking” policy to reduce dependence on the Chinese market and suppliers.
Despite this, China remained Germany’s main trading partner for the eighth consecutive year in 2023, with 254.1 billion euros ($271 billion) in goods and services exchanged between the sides, slightly more than what Germany negotiated with the USA, but a contraction of 15.5% compared to the year before. German exports to China totaled 97.3 billion euros ($104 billion), according to Germany’s Federal Statistical Office, although figures have varied depending on exchange rate fluctuations and rounding of figures.
Chinese state broadcaster CCTV showed Scholz getting off his plane in Chonqing and leaving in a motorcade, but did not broadcast any comments to the welcoming delegation.
Before his arrival, Scholz posted on the social platform
China has refused to criticize Russian aggression. It has maintained trade relations with President Vladimir Putin’s government and aligned its foreign policy with Moscow, in opposition to the US-led liberal political order, while promoting its authoritarian one-party system as a superior alternative.
After visiting a hydrogen engine production facility run by the German company Bosch, Scholz toured the city with young architects and took a boat cruise on the famous Yangtze River, one of two powerful watercourses that partially surround the city, at the top. of cliffs.
After a visit on Monday to Shanghai, Scholz will fly to Beijing and meet Xi on Tuesday at the Diaoyutai State Inn before being received with military honors by Li in the Great Hall of the People, the seat of the ceremonial legislature in the heartland. from China. capital. Other visits and meetings will take place before his departure on Wednesday night.
This is Scholz’s second trip to China since becoming chancellor in late 2021. His previous visit was in November 2022 and was essentially a day trip due to the strict COVID restrictions still in place at the time.
It is his first visit since the German government presented its China strategy last year, which was the target of criticism from Beijing. Premier Li and a delegation of senior officials visited Berlin in June.
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Associated Press reporter Geir Moulson contributed to this report from Berlin.
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