Germany’s trade, tech diversification ‘not China decoupling’, Chancellor Olaf Scholz says

Diversification plan was part of a national security strategy that Scholz’s ruling coalition was formulating, he said at a conference in Singapore

Scholz also suggested that it was unlikely the Bali G20 meeting would lead to a clear consensus on issues such as Russia’s war on Ukraine

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German Chancellor Olaf Scholz speaks during the 17th Asia-Pacific Conference of German Business. The German leader was in a Singapore for a two-day visit - his first since taking office last December - and will attend the G20 Summit in Bali on Tuesday. Photo: dpa

Published: 9:52pm, 14 Nov 2022Updated: 8:20am, 15 Nov 2022

German Chancellor Olaf Scholz said his government’s plan to scale back “one-sided dependencies” on raw materials and critical technologies was aimed at making domestic industries “less vulnerable” and was not indicative of a decoupling from China.

Scholz told a business conference in Singapore that the diversification plan was part of a national security strategy that his ruling coalition was formulating.

“Diversification makes your businesses less vulnerable – and our economies more stable and secure,” Scholz told executives and policymakers at the Asia-Pacific Conference of German Business in Singapore.

The German leader was in the city state for a two-day visit – his first since taking office last December – and will attend the G20 Summit in Bali on Tuesday.

German Chancellor Olaf Scholz speaks with Singapore Prime Minister Lee Hsien Loong during their meeting. Like Scholz, Lee does not expect much progress to be made at this week’s G20 summit. Photo: dpa

“Diversification however doesn’t mean decoupling,” Scholz said. “That difference matters at a time when concepts such as near-shoring, deglobalisation and self-sufficiency are gaining traction.”