On the importance of Sino-German partnership

By George N. Tzogopoulos 

The Sino-German relationship is perhaps the most important one between China and a single EU member state, especially after Brexit negotiations have started. The ‘all round strategic partnership’ label defining it is indicative of this importance. Within this positive framework, Chinese President Xi Jinping pays an official visit to Berlin after his first stopover in Moscow. Invited by his German counterpart Frank-Walter Steinmeier and Chancellor Angela Merkel, his visit is elevating the bilateral partnership to a new stage. Bright perspectives are clearly outlined in the article he wrote for the German opinion-making newspaper Die Welt titled: ‘For a better world’. Only a few weeks ago, Prime Minister Li Keqiang had also passed by Berlin before going to Brussels to attend the China-EU Summit. This year is certainly symbolic as it marks the 45th anniversary of the establishment of diplomatic relations between the two countries.

Chinese President Xi Jinping (R) holds talks with German Chancellor Angela Merkel in Berlin, capital of Germany, July 5, 2017. [Photo: Xinhua]

Beyond symbolism, trade has the lion’s share in the bilateral relationship. German imports from and exports to China rose to €170 billion according to the Federal Statistics Office in 2016. France remained the second-most important business partner for Germany with a combined trade volume of €167 billion euros and the US came in third with €165 billion. Moreover, data from the Chinese Ministry of Commerce demonstrate that China invested over $2.9 billion in Germany in 2016, a 258.6 percent increase year-on-year while Germany pumped 392 projects in China with an investment volume of $2.71 billion. The future possible alignment of ‘Made in China 2025’ with German ‘Industry 4.0’ does constitute a critical example on how the two sides can obtain win-win results. 

Notwithstanding their harmonious collaboration, partners do not always agree. This is the case for China and Germany. Beijing, for instance, has been frustrated by Berlin’s hesitant stance in recognizing its Market Economy Status last year in spite of some early positive indications before the final European decision was made. For its part, Berlin is attempting to secure more opportunities for German companies investing in China via their expanding participation in public tenders. It has also started to reconsider its initial unconditional policy of selling ‘know-how’ and technological expertise to the Chinese side irrespective of high economic offers. 

But dialogue can help the two sides bridge their differences or at least be engaged in friendly consultations and find a mutual better understanding. China and Germany should be particularly satisfied for the institutional mechanisms they have already launched towards this direction. These include the frequent exchange of views on a plethora of themes and the systematic organization of conferences and symposia. The development of new policy ideas can be thus facilitated. Last June, for example, the two countries agreed in Beijing to establish a new center for sustainable development. Through this new mechanism they seek to expand their cooperation with join projects in Asia and Africa. 

The current juncture is promising for even closer collaboration between China and Germany on additional fronts. The unpredictable character of US President Donald Trump and his decision to follow the way of unilateralism in important international issues such as climate change provisionally unites the two sides as they both share the sentiment of responsibility and maybe the will to lead. On a broader level, they also agree on their views on globalization while Washington is vacillating between protectionism and vague commitments to turn the ‘America First’ slogan into practice.

From another perspective, the visit of President Xi to Berlin is taking place at a sensitive moment for China’s international moment. German policy-makers and scholars are monitoring the motivations behind the Belt and Road initiative with some of them diagnosing geopolitical risks for the EU. The Beijing administration is aware of this tendency and apart from insisting on the ‘win-win’ logic, it is also investing on soft power as well as friendly and relaxing gestures. The decision of Xi to visit the Berlin zoo where two giant pandas have found their new home should not be ignored. This is also the case with his attendance of a football match between young players of China and Germany. Panda and football diplomacy might break the ice even when difficult conversations are being held. 

Last but not least, the bilateral dimension of the Sino-German relationship goes together with the multilateral one in several international organizations, fora and instruments. This is not related to the new challenges and opportunities of the Trump presidency but has a much deeper background. Beijing and Berlin are discussing their potential coordination at the United Nations, the International Monetary Fund, the World Trade Organization, the Asian Infrastructure Investment Bank etc. The fact that they often share similar visions on world growth, prosperity and peace generates some optimism for the future. 

Dr George N. Tzogopoulos is a lecturer at the European University in Nice, France and the Democritus University in Thrace, Greece. He is also a research fellow at the Centre International de Formation Européenne (CIFE), the Hellenic Foundation for European and Foreign Policy (ELIAMEP) where he coordinates its Asian Studies Programme and a research associate at the European Council of Foreign Relations (ECFR). George is also the founder of chinaandgreece.com an institutional partner of CRI Greek.