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Scholz in China: A Diplomatic Move to Address Trade Disputes and Ukraine Crisis

Daniel Kim Views  

Reuters

German Chancellor Olaf Scholz made his second visit to China after taking office. During his stay, Chancellor Scholz is expected to discuss trade conflicts and the war in Ukraine with Chinese President Xi Jinping.

According to Bloomberg, on the 14th, Chancellor Scholz entered China through Chongqing. CEOs from Siemens, Bayer, Merck, BMW, and Mercedes-Benz accompanied him on this visit.

The Chancellor and the executives plan to visit Shanghai and Beijing after Chongqing. In Beijing, they will meet President Xi Jinping and Premier Li Qiang.

Bloomberg, citing sources, reported that Chancellor Scholz plans to urge President Xi to end discriminatory business practices in China, including those related to electric vehicles.
According to a recent survey by the German Chamber of Commerce, two-thirds of German companies in China face rising costs due to unfair competition.

Last week, the European Union (EU) also vowed to respond strongly to China’s unfair trade practices. This follows the U.S. pointing out China’s overproduction issue, and the EU is intensifying pressure on China.

However, as of last year, Germany, which has China as its largest trading partner, finds itself in a somewhat awkward position between the EU and China. Before departing for the country, Ursula von der Leyen, the President of the European Commission, reportedly urged Chancellor Scholz to take a firm stance on China. In response, sources said that Chancellor Scholz plans to engage President Xi in a manner that promotes bilateral economic cooperation without compromising the EU’s position.

Chancellor Scholz also plans to discuss the war in Ukraine with President Xi. He is expected to request President Xi’s attendance at the Ukraine peace conference scheduled to be held in Switzerland in mid-June. Russia has already informed that it will not participate.

Meanwhile, Volkswagen announced that CEO Oliver Blume would not participate in the visit to China due to scheduling issues. Bloomberg reported that Volkswagen is under investigation for alleged Uyghur Forced Labor Prevention Act violations.

Daniel Kim
content@viewusglobal.com

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