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Germany
ChinaDiplomacy

Censorship, market access and forced tech transfer: the tricky business in Germany’s trade ties with China

Berlin’s envoy to Beijing says many Europeans share US concerns about the need for China to open up its markets

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German direct investment in China grew by almost 10 per cent in the first half of last year. Photo: AFP
Catherine Wong

A trade war between China and the United States would be a “lose-lose” situation but European countries share US concerns about the lack of market access and forced technology transfers to China, according to Germany’s top envoy to Beijing.

German ambassador to China Michael Clauss said it was in everybody’s interest to support an open global trade system centred on a strong World Trade Organisation.

“Chinese investments are highly welcomed by Germany,” he said. “However, it cannot continue to be a one-way street: openness on the one side and tightening market access on the other. There is a growing discussion in Europe about the need for greater reciprocity.”

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The comments come as the Washington presses ahead with retaliatory trade action against China over a lack of market access. On Tuesday US President Donald Trump signed into law a steep tariff on imported solar panels and washing machines.

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Trump also said earlier this month that his administration was considering a “big fine” as part of a trade investigation into China’s alleged theft of intellectual property.

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