In China, Germany’s Olaf Scholz calls for ‘open and fair’ competition as differences weigh on trade
- Three-day trip by German delegation comes as EU is pursuing an anti-subsidy investigation into Chinese electric vehicles, and with concerns about overcapacity looming large
- Bilateral relations have also been strained by allegations of unfair competition and concerns about market access for foreign firms in China
A call for “open and fair” competition between European and Chinese automakers, along with visits to clean-energy firms, during German Chancellor Olaf Scholz’s China trip reflect how there is room for improvement in the two countries’ US$207 billion annual trade, even as threats mount from de-risking calls and political pressure.
In Chongqing on Sunday, the first leg of his three-day visit to China, the German leader visited a hydrogen-fuel-cell plant operated by German auto supplier Bosch. And after arriving in Shanghai on Monday, he visited an innovation centre of German company Covestro, a producer of polymers and high-performance plastics.
Also on Monday, he was quoted by Chinese state broadcaster CCTV as saying that the German market welcomes China-made cars. However, he added, Europe will not tolerate dumping, overcapacity or violations of intellectual property rights. That prompted his insistence on open and fair competition with China’s carmakers.
Scholz is leading a delegation that includes environment, agriculture and transport ministers, as well as business executives of manufacturing giants such as Siemens, BMW and Benz.
Siemens CEO Roland Busch told state media CGTN on Sunday that he was confident in the potential of the Chinese market, and he pointed to years of “very strong” relations between the two countries.