German Chancellor Olaf Scholz begins visit to China amid growing European concerns over unfair competition

Mr. Scholz’s visit to China will be his second since taking office, following his first visit in November 2022. He is also the first leader of a major Western country to visit China this year.

Pan Zhongying, chair professor of international political economy at Sichuan University, said Scholz’s visit is likely to help German companies, especially the new energy vehicle industry, further develop their business in China.

“Southwestern China used to be economically underdeveloped, but now it has become a new center of economic growth,” Pan said.

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Shangyoubao, an online news platform affiliated with the state-run Chongqing Daily, said that as of February, Germany had established a total of 84 companies in the southwestern metropolis, playing a role in “building and developing Chongqing.” I told you.

Scholz’s visit to the megacity began with a visit to a hydrogen fuel cell manufacturing plant set up by the German company Bosch. This is an area that Chongqing and the neighboring Sichuan province authorities have been actively developing in recent years.

Despite positive messages from the Chinese government on the current state of China’s economy, there is growing skepticism about its near-term growth prospects, with Pan saying Scholz’s visit was a “high priority for both Germany and the European Union.” “This shows that people want to know the true state of China’s economy,” he said.

Ding Chun, a professor of European studies at Fudan University, told state-run China News Agency that Germany cannot be separated from China and “needs to maintain and deepen economic and trade exchanges and cooperation with China.” Stated.

In February, the German Federal Statistical Office announced that China “will become Germany’s most important trading partner for the eighth consecutive year in 2023.”

According to the General Administration of Customs, bilateral merchandise trade in 2023 decreased by 8.7% from the previous year to USD 206.8 billion. China’s exports decreased by 13% from the previous year to $100.6 billion.

Scholz’s visit comes amid growing EU-wide concerns that foreign companies do not face a level playing field, citing factors such as market barriers and industry overcapacity.

“Chinese and German companies are becoming increasingly close competitors, both within China and on the global market,” the chamber said.

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Meanwhile, the EU is looking for ways to “de-risk” its relationship with China and reduce key dependencies in its supply chains.