Germany to seek closer ties with Japan amid supply chain tensions

During Chancellor Olaf Scholz’s visit, Berlin hopes to learn about Japan’s raw material strategy and follow Tokyo’s lead on how to cut dependency on imports

Consultation with Japan – Germany’s second-largest trading partner in Asia behind China – is of high political and symbolic importance, German officials say

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German Chancellor Olaf Scholz (left) and Japan’s Prime Minister Fumio Kishida shake hands at the prime minister’s official residence in Tokyo on Saturday. Photo: Pool via AP

Published: 4:10pm, 18 Mar 2023

German Chancellor Olaf Scholz touched down in Japan on Saturday with six of his ministers, looking to strengthen economic ties with Tokyo as he considers reducing German dependence on Chinese raw materials amid global supply chain tensions.

Scholz and Japanese Prime Minister Fumio Kishida kicked off their first “government consultation” involving multiple cabinet members from both countries to discuss ways to secure economic security.

Germany holds such consultations with a number of countries including France and China, but to hold its first such consultation with Japan is of high political and symbolic importance, German officials say.

German Chancellor Olaf Scholz and Japan’s Prime Minister Fumio Kishida during the Japan-Germany summit meeting in Tokyo on Saturday. Photo: Pool via Reuters

Kishida spoke of the “close and strong relations between our countries that is at a level not reached before”, at the opening of the meeting, while Scholz said he looked forward to discussing issues including global security.

Given Japan’s passing of a bill on economic security, Berlin hopes to learn about its raw material strategy and follow Tokyo’s lead on how to cut dependency on imports, a German government official said of the visit.

In a move primarily focused at China, Japan’s parliament passed an economic security bill last year aimed at guarding technology and reinforcing critical supply chains.

Trade between Germany and China rose to a record level last year, making the Asian country Germany’s most important trading partner for the seventh year in a row despite political warnings in Berlin about excessive dependence.