On Thursday, the federal government announced its China strategy, which was developed by Foreign Minister Annalena Baerbock. The strategy aims to guide Germany’s relationship with China, which is described as a “partner, competitor, and systemic rival.” Rather than completely severing ties with China, the strategy focuses on minimizing risks and diversifying supply chains. Baerbock emphasizes the importance of promoting the German economy in Europe and reducing dependencies. The strategy also highlights the need for cooperation with China, particularly in tackling the climate crisis. The government’s strategy document outlines various risks associated with China, such as dependence on Chinese raw materials and the protection of critical infrastructure and cyber attacks. The document also presents approaches to reduce these risks, including resilience, circular economy, digital and green transition, alliances with allies, and free software. While China has achieved economic growth and prosperity, the document acknowledges concerns about civil and political rights and China’s aim to increase its own dependency while reducing others’ dependence on foreign countries. The government specifically addresses the need to reduce unilateral dependencies on critical products and technologies and mentions various examples such as rare metals, lithium batteries, photovoltaics, and active pharmaceutical ingredients. The COVID-19 pandemic has highlighted imbalances in these dependencies. Recent export restrictions by China on critical metals have further complicated the situation. The government aims to diversify economic relations to continue participating in China’s economic development while reducing dependencies in critical areas.
