Germany is recalibrating its close economic ties with China

But only very cautiously


members of parliament from parties across the political spectrum had pushed for a rethink of Germany’s China policy, without much success. Angela Merkel, Germany’s chancellor for 16 years until the end of last year, stuck to a course that prioritised ever-closer commercial ties over concerns about human rights or China’s geostrategic ambitions. This was always set to change with the advent of a new government, led by Olaf Scholz, which had promised a new China strategy in its coalition agreement. But the war in Ukraine has focused minds even more on the dangers of close business relations with an autocracy.The most important aspect of the new China policy, whose publication has recently been postponed, will be a robust effort to reduce China’s economic leverage. Last year China was Germany’s top trading partner for the sixth consecutive year, with combined exports and imports of more than €245bn ($255bn). Exports to China represent around 8% of Germany’s total.

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