Germany seeks balanced economic relations with China, finance minister says

German Finance Minister Lars Klingbeil affirmed that his country seeks balanced economic relations with China based on equal opportunities, noting that closer ties between the two nations are essential for protecting supply chains amid rising global tensions, particularly those linked to the war in Ukraine.

Klingbeil stated that Germany does not fear economic competition with China, provided that such competition remains fair and based on clear rules.

He pointed out that direct dialogue with Beijing has become necessary to protect German industries and the jobs associated with them. He said that Germany faces real challenges with China, including China’s excess production capacity in sectors such as steel and electric vehicles, as well as the difficulty in accessing rare earth elements essential for industrial technologies.

The German Finance Minister begins a visit to China later today as part of the German government’s efforts to reopen economic dialogue channels with Beijing after a period of trade tensions. During the visit, he will also participate in the third round of the High-Level Financial Dialogue between the two countries, a bilateral mechanism aimed at addressing the most sensitive economic issues between the two sides.