BEIJING, China, Nov 19 — China and Germany have reached a series of outcomes during high-level financial talks in Beijing, a clear signal that both countries are moving to ease recent trade tensions and secure a stable foundation for mutually beneficial cooperation, analysts said.
As the world’s second and third-largest economies, respectively, China and Germany will create a stabilizing effect across the European Union when they engage constructively, they added.
Their comments came after Chinese Vice-Premier He Lifeng and German Vice-Chancellor and Minister of Finance Lars Klingbeil on Monday co-chaired the 4th China-Germany High-Level Financial Dialogue.
Both sides are committed to bilaterally and multilaterally strengthening macroeconomic policy coordination, and jointly promoting global economic recovery and sustainable development, according to a statement released by China’s Ministry of Finance on Monday.
The two nations also reaffirmed their support for a rules-based, fair, open, transparent, inclusive, equitable, sustainable and nondiscriminatory multilateral trading system, with the World Trade Organization at its core, as noted in the statement.
The high-level talks took place during a period of increased tensions between the two nations.
Earlier this month, Germany announced plans to reassess its trade policy toward China, with scrutiny spanning energy, raw material imports and Chinese investment in critical infrastructure. Berlin also voiced support for proposals by the EU to increase tariffs on foreign steel, including from China.
The dialogue’s substantive outcomes, spanning financial market access, green transition cooperation, and bilateral trade and investment, reflect a concerted effort to re-anchor the relationship in shared economic interests, said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.
China and Germany share a robust foundation for cooperation across various sectors in advanced manufacturing and green energy. The two countries should uphold the multilateral trading system and fair competition through frequent dialogues, Zhou said.
German optics and optoelectronics manufacturer Zeiss Group is set to ramp up its local innovation capabilities in China’s Yangtze River Delta region and the Guangdong-Hong Kong-Macao Greater Bay Area.
“China is a big market for all the players. The ecosystem we can find here is great,” said Martin Fischer, president and CEO of Zeiss China, adding that the company will be committed to further increasing localization in China.
Preliminary data released by the German Federal Statistical Office in late October showed that China has regained its position as Germany’s largest trading partner during the January-August period, surpassing the United States.
During the period, bilateral trade between Germany and China reached 163.4 billion euros ($189.5 billion), marginally higher than the 162.8 billion euros in trade between Germany and the US.
With Germany representing both the EU’s largest economy and most influential voice, its approach could help shape the EU’s policy toward China, analysts said.
The efforts by Berlin and Beijing to stabilize their economic ties through constructive dialogue could establish a critical foundation for greater stability in the broader China-EU relationship, said Gao Lingyun, a researcher at the Chinese Academy of Social Sciences’ Institute of World Economics and Politics in Beijing.
According to a report released by the European Union Chamber of Commerce in China and global consultancy Roland Berger last week, “uncertainty” continues to loom over Chinese companies operating in Europe, with 81 percent of surveyed enterprises perceiving “rising unpredictability” in the EU’s business environment.
In late October, Commerce Minister Wang Wentao held a video call with European Commissioner for Trade and Economic Security Maros Sefcovic at the latter’s request, and engaged in in-depth discussions on key bilateral economic and trade issues, including export control measures and the EU’s anti-subsidy investigation into Chinese electric vehicles.
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