Refreshed China-Germany deal helps Beijing keep economic foothold in West amid US-led decoupling
- At the first high-level talks between China and Germany in four years, both sides agree to update a financial cooperation agreement, but trade appears sidelined
- China’s updated agreement with Europe’s largest economy keeps door open to part of the world where other leaders have tried to pare Beijing’s influence
The weekend update of an economic deal between China and Germany offers Beijing a continued foothold in the West as it navigates around US-led economic decoupling, but the pact itself appears to lack any major strides in trade or investment.
Stung by its five-year trade dispute with the United States, and recently by supply-chain-decoupling efforts spearheaded by Washington, China has tapped Germany for help by updating a financial cooperation agreement first inked in 2019.
The document departs from the 2019 version by omitting mentions of the Belt and Road Initiative, Beijing’s trade strategy to link economies into a China-centred trading network. The latest deal also eschews trade cooperation. China said it would instead work on lifting possible obstacles to cross-border transactions.
The two countries agreed to further work together with fellow G20 members to tackle debt relief for low- and middle-income nations.