EU unimpressed by German Chancellor Olaf Scholzs visit to China

German Chancellor Olaf Scholz arrived in Beijing on Thursday as the first Western leader to visit China since the coronavirus pandemic.

Mr Scholz, who is leading a delegation of senior German business leaders, is presenting his visit as a regular event, providing an important political contact between Asia and Europes single biggest economies.

However, the visit is proving deeply controversial not only among other European Union member states, but also among the Chancellors governing coalition partners. Critics argue that the German leader is prioritising his countrys national economic ties at a time when the EU is looking to reduce its dependency on countries like China and Russia.

Since 2019, Europe has defined China as both a partner in commercial matters or on major global issues such as climate change, and as a technological and economic competitor, and also a systemic rival with the ability to challenge Europes system, values and strategic interest.

The debate is now moving firmly towards regarding China as more of a rival than a partner.

The acquisition of European high-tech companies and strategic infrastructure assets by what are often state-backed Chinese corporations has alarmed European governments.

Complaints about Chinese restrictive trade practices and alleged human rights violations have scuppered a proposed new investment treaty between China and the EU.

And although China claims it is not taking sides in the Ukraine war, the fact that state-controlled Chinese media outlets frequently repeat Russian narratives on the conflict has not helped Beijings reputation in Europe.

A European consensus on its future relationship with China remains unlikely.

But as French President Emmanuel Macron has persistently argued, at the very least, European leaders can agree not to fall for Beijings divide-and-rule strategy of offering privileged access to Chinese markets to one European nation while simultaneously imposing trade sanctions on another.

The French President led by example. In March 2019, when Chinese President Xi Jinping visited Paris for what was seen as an effort to woo France, Mr Macron invited both the German Chancellor and the President of the European Commission the EUs executive body to be with him.

So when Mr Scholz said in October that he was planning to visit Beijing, Mr Macron suggested that perhaps they should reinforce the message of European unity by travelling to China together.

Germanys answer was nein or no. More On This Topic China says US has 'no right' to interfere in Hamburg port deal Scholz visit to strengthen mutual trust: China Daily contributor The German leader also over-rode objections from his countrys security experts by authorisingChinas shipping giant Cosco to purchase a stake in the key German port of Hamburg.

Mr Scholzs determination to shield Germanys relations with China from the current diplomatic headwinds has a clear economic rationale.

Germany has about 100 billion (S$139 billion) worth of trade with China, and the market is crucial for German car manufacturers such as BMW, Mercedes and Volkswagen, as they rely on China for between 30 per cent and 40 per cent of their revenue.

A recent survey by Germanys IFO economic research institute found that almost half of the countrys industrial firms now rely on significant trade or investment relations with China.

Even in the currently changed political circumstances, Mr Scholz has argued that China remains an important business and trading partner for Germany and Europe, and that we dont want to decouple from it.

But French politicians have made no secret of their disappointment with Mr Scholzs move, and so have EU officials.

Mr Thierry Breton, the European Commissioner for the Internal Market, recently warned EU states not to be naive regarding Chinese investments in the blocs critical infrastructure.

Referring to measures the EU has introducedto block investment in critical infrastructure, Mr Breton added that its up to EU member states to use them and change their behaviour,a direct dig at the German leader.

Pressure is also growing from Mr Scholzs governing coalition to deliver a tougher message to Mr Xi. More On This Topic Scholz vows not to ignore 'controversies' on China visit Worries over Germanys dependency on China overshadow Scholzs trip Foreign Minister Annalena Baerbock, who belongs to the Greens the German coalitions junior partner reminded the Chancellor that her party clearly stated in the coalition agreement that China is our partner on global issues and that we cannot decouple in our globalised world, but also that China is a competitor and increasingly a systemic rival.

It is crucial to now make clear in China the messages we laid down in the coalition agreement, Ms Baerbock said.

Given his stance, Mr Scholz is guaranteed a warm welcome in Beijing.

But when he talks again about the need for Europe to speak with one voice, he is likely to get a frosty reception in European capitals.