Germany urges companies to 'de-risk' from China, emphasizes it is not seeking a decoupling

Germany said determination is an urgent request for companies to de-risk from China, portion "not pursuing a decoupling" of economies.

"For Germany, China remains a partner, a competitor, a systemic rival. But the facet of systemic rivalry has go progressively salient successful caller years," Germany's overseas curate Annalena Baerbock said Thursday astatine the Mercator Institute for China Studies deliberation vessel successful Berlin, according to a translation from DW, a German newspaper.

The curate was presenting the country's strategy connected China and explaining however the state plans to support its interests.

"China's economical strategy aims to marque it little babelike connected different countries, portion making planetary accumulation chains much babelike connected China," the overseas ministry said successful a 64-page report published Thursday.

Last week, China slapped export curbs connected 2 cardinal chipmaking metals, successful what was deemed a informing to Europe and the U.S. successful a technological warfare implicit high-tech chips.

"In presumption of overseas policy, China is pursuing its ain interests acold much assertively and is attempting successful assorted ways to reshape the existing rules‑ based planetary order. This is having an interaction connected European and planetary security," the study said.

"We don't request to look excessively intimately to spot that China has changed. Anyone who listens to China knows the self-confidence with which it volition decisively power the improvement of our world," said Baerbock during her speech.

China's overseas ministry did not instantly respond to CNBC's petition for comment.

The Chinese Embassy successful Germany said successful a statement that "China hopes that Germany volition presumption China's improvement rationally, comprehensively and objectively."

"Many of the challenges and problems Germany is presently facing are not caused by China. China is Germany's spouse successful dealing with challenges, not its opponent," said the embassy.

"Viewing China and formulating strategies toward China based connected ideology volition lone exacerbate misunderstanding and misjudgment, and harm practice and communal spot betwixt the 2 sides."

The German overseas ministry's study further highlighted that contention among nations is beneficial and that "Germany accepts contention with China." However, it said that contention needs to beryllium "based connected just rules."

"It is not our volition to impede China's economical advancement and development. At the aforesaid time, de-risking is urgently needed. However, we are not pursuing a decoupling of our economies," said the report.

Germany wants to go "less babelike successful captious sectors" specified arsenic aesculapian technology, medicinal products and uncommon earths, the study said. It added that "China has exploited different countries' dependencies successful the past," listing semiconductors arsenic an example.

The study besides said that "economic and commercialized relations stay an important constituent of bilateral practice with China" and that Germany wants to guarantee this practice "becomes fairer, much sustainable and much reciprocal."

China is Germany's largest azygous trading partner. In 2022, Germany's imports from China rose 33.6% from a twelvemonth agone to 191.1 cardinal euros ($204.4 billion), according to information from Federal Statistical Office of Germany. Meanwhile, German exports to China roseate lone 3.1% to 106.8 cardinal euros.

While "China's dependencies connected Europe are perpetually declining, Germany's dependencies connected China person taken connected greater value successful caller years," said the report.

Last month, Chinese Premier Li Qiang met with German President Frank-Walter Steinmeier to sermon bilateral relations betwixt the 2 economies.

Li said that China and Germany "enjoy a coagulated instauration for practice and beardown dynamics for development."

He besides said that China "has each assurance successful the prospects of China-Germany cooperation."