It was a memorable China Day in Berlin. Large parts of the governments of China and Germany gathered for the German-Chinese government consultations, led by the heads of government Olaf Scholz and Li Qiang.
The ministers agreed, for example, on more cooperation in climate protection. The meeting ended with what was supposed to be a press conference between Chancellor Scholz and Premier Li. But the Chinese guests had brought with them the custom of their home country: journalists were not allowed to ask questions. And this after Scholz had just praised the importance of a free press. On the outside, the Chancellor’s Office in Berlin looks nothing like the Great Hall of the People, but it seems to approximate it in spirit.
The actual talks were a bit like the visit of US Secretary of State Antony Blinken to Beijing the day before: a cautious approach, getting to know each other – and a determination of positions for relations. These are less tense between Berlin and Beijing than between the US and China.
But contradictions remained that day. While Li Qiang was promoting more investment and an entrepreneurial view of risks at the bilateral economic forum with entrepreneurs immediately after the consultations, the Office for the Protection of the Constitution was specifically warning against espionage from China. The intelligence agency’s timing could not have been better to contradict Li’s message as effectively as possible. In its new annual report, the agency called China the “greatest threat in terms of economic and scientific espionage as well as foreign direct investment in Germany.”
That is why companies and even some politicians are looking with interest to Brussels, where the EU Commission presented its de-risking strategy on Tuesday. Ideas for outbound investment screening are the main source of debate. Only Competition Commissioner Margrethe Vestager mentioned the word “China” in Brussels, as Amelie Richter reports. But the People’s Republic was the proverbial elephant in the room.
Olaf Scholz made no secret of his satisfaction with the German-Chinese government consultations at the Chancellor’s Office on Tuesday afternoon. Almost jovially, he placed his hand on the Chinese premier’s shoulder at the end of the joint press conference. Since journalists were not allowed to ask questions and only prefabricated statements were read out, the chancellor expressed it in this way: Look, we get along. Li Qiang and Olaf Scholz, China and Germany.
“Direct dialogue, personal conversation, a real exchange – all this is even more important than usual in these extraordinary times full of global challenges and crises,” Scholz said Tuesday, adding that direct contact contributes to a better understanding of each other and allows “to discuss issues where we have different opinions and differences in direct conversation.”
Officially, Germany has been pursuing the triad of partner, competitor and strategic rival vis-à-vis China, which has also been customary in the EU since 2019. And while many a Green minister sees rivalry above all in Beijing’s behavior, Scholz focused on China as a partner at the seventh German-Chinese government consultations.
Li and Scholz apparently also took the motto of the consultations seriously: Acting sustainably together. While Beijing has been groaning under an oppressive heat wave for weeks, Scholz cited the flood disaster in the Ahr Valley to emphasize the urgency of the fight against global warming. That’s why “close cooperation in the fight against climate change is a particular concern,” he said. Agreed was:
For example, Scholz promised to make industrial processes more climate-friendly, accelerate the energy transition, promote the switch to climate-friendly mobility and strengthen the circular economy. “Every ton of carbon we save makes a contribution to limiting global warming.” The chancellor also introduced the idea of a common global target for the use of renewable energies.
Of course, Scholz also pointed out the great importance of economic relations. “Our dynamic economic relations are an important and constitutive part of our relationship.” For this reason, he said, the third high-level German-Chinese financial dialogue will be held in Berlin this year.
However, there are certainly also problems: Access to the Chinese market and fair competitive conditions for German and other foreign companies in China remain challenges where he is pushing for concrete improvements, according to Scholz. “I have named some very concrete problems to my colleague that we are concerned about. A level playing field requires improvements here, which we want to strive for.” In addition, he said, the German supply chain law will apply from now on. And thus Scholz gave his Chinese partner Li Qiang the following advice: “Dignified production conditions, combined with an improvement in the human rights situation, are in both our interests.”
Marco Buschmann, the Federal Minister of Justice, also called for dialogue. In his area, the main issues are the rule of law and human rights. “We have many interests in common with China – and some points of view divide us,” said the FDP politician after his talks with his Chinese counterpart He Rong. For this very reason, he said, it is crucial to remain in dialogue. “The rule of law can only exist in harmony with the validity of human rights,” Bushman stressed.
However, it is not only trade relations that should be given new impetus, according to Scholz. But also scientific and social exchange. Or as it is called today: people-to-people. “The more we know about each other and the more open the exchange, the less room there is for misunderstanding,” Scholz said.
The problems on both sides are well known: Foreign journalists are less and less able to report freely from China, while China complains about Germany’s slow visa issuance. The German Foreign Office tells Table.Media: “We are making efforts to expand the number of appointments again through organizational measures and increased staffing. Whether the situation for reporters in China will also improve remains doubtful.
Li Qiang, for his part, expressed his gratitude for the hospitality and warm welcome on his first trip abroad as Chinese Premier. He said the government consultations had been very practice-oriented and highly effective. As important results for China, Li mentioned:
Li asserted, “China attaches great importance to the development of relations with Germany and with Europe.” Therefore, he said, they want to defend “true multilateralism” side by side. “We should steadily expand our cooperation and create even more momentum for our cooperation in smart manufacturing, EVs as well as green development.” China’s economy has regained significant momentum after the pandemic, Li stressed.
While Germany scores in science and technology, China has “a huge market, a complete industrial system and rich human resources.” As Li and Scholz smiled at each other, it seemed possible to read their minds: The conditions fit each other perfectly. It would be almost reprehensible not to take advantage of this potential.
But that would be too much of a perfect world. Reality consists not only of announcements and wishes but also of tangible problems. One example: Scholz did address the war in Ukraine and pointed out China’s responsibility to exert more influence on Russia, not to supply weapons and to preserve Ukraine’s territorial integrity and sovereignty. But Li did not respond to this publicly with a single syllable.
And thus remains: The chemistry between Li Qiang and Olaf Scholz seems to be right. For both, these were their first German-Chinese consultations as heads of government. It seemed like a friendly meeting to get to know each other. But real dialogue also involves solving problems. Here, the list of missing players is particularly interesting: both the defense ministers and the foreign minister were unable to attend.
Also absent was a critical inquiry. It is to be hoped that Scholz did this behind closed doors. Because during his joint appearance with Li Qiang in the Federal Chancellery, the present journalists were not allowed any follow-up questions.
The current government consultations have also been followed by a meeting of industry representatives with the two heads of government. The 11th Sino-German Forum for Economic and Technological Cooperation was held in Berlin on Tuesday. Present were the heads or high-ranking representatives of the companies
As expected, Premier Li Qiang used the occasion to highlight the openness of the Chinese market. Globalization is profitable for all sides, Li said. China welcomes international companies.
Li also showed, however, that he is familiar with the discussion in Germany, at least in outline. He elaborated on his interpretation of the term “de-risking,” which is currently being touted as a universal solution by all European China strategists. “Risk prevention and cooperation are not opposites,” he told the CEOs, according to the report by the state news agency Xinhua. The state should leave risk assessment to companies; they are best placed for this, Li said.
Some business representatives were certainly happy to hear this; the present Chancellor Olaf Scholz probably was less enthusiastic. In its new security strategy, his government is focusing on de-risking, and the Federal Office for the Protection of the Constitution has just pointed out considerable risks of industrial espionage.
Conversely, China sees no risks in German products, Li flattered the audience at the Ministry of Economics. All of his company cars were Audis. And in Chinese hospitals, he had been examined with German equipment and had always felt safe.
A failure of cooperation was the greatest risk, the prime minister touted in favor of continued engagement in his country. While he expressed understanding for Germany’s security concerns, he complained that the risks had so far only been defined vaguely. Especially in uncertain times, he said, it is important to rely on established partners. Moreover, he expressed a lot in set pieces of Chinese phrases from economic policy.
But by starting with individual business and personal risks, Li misses the real meaning of “de-risking.” The EU and the German government’s use of the term is about the risk of dependence on China as a whole. These threats were revealed during the pandemic, when masks and paracetamol were missing, and then again after the Russian aggression against Ukraine when gas was missing. Federal Chancellor Scholz also pointed this out. He hastened to note, however, that reducing risks does not mean turning away from globalization.
The elephant in the room, which no one mentioned, is not the continuation of normal trade relations – here, the risks would actually be well manageable – but the disaster scenario of a Chinese attack on Taiwan. Germany must play out these scenarios for itself. In this light, Li’s insistence on a less relevant variant of risk reduction resembled a farce.
Li appeared before the German bosses fully aware of how important the Chinese market remains for many of them. He stressed he expected the entrepreneurs to continue acting as ambassadors of the Sino-German friendship.
Those present knew, as did Li, that dependence on supplies from China would continue unchanged. This is also underpinned by a study by the Institute of the German Economy (IW), first reported by Handelsblatt. Even more computers, even more raw materials, even more consumer goods are coming from China than ever before.
This type of dependency can be reduced by diversifying providers. But this will take time. The formulation of a China strategy by the German government, which is expected at the beginning of July, can hardly change this reality in the short term.
German business representatives accordingly agreed with Li and emphasized the partnership between the two countries. According to Xinhua, they expressed their “conviction” that China would stick to the opening up. Certainly, Li was also pleased to hear the announcement that investment in China will be increased. There was no word on how that would square with the German chancellor’s de-risking strategy. As is well known, questions were not permitted.
The business dialog has been part of the format since the first consultations. Likewise, it has been part of it from the beginning that the business leaders sit somewhat stiffly and present the problems of their industry in a restrained-indirect manner. This time, too, they voiced several familiar complaints, including a lack of intellectual property protection, IT security and market access barriers. Siemens CEO Roland Busch, in his role as Chairman of the Asia-Pacific Committee of German Business, called for a “level playing field,” but also called Li’s visit “good and appropriate.”
As is so often the case with government contacts with China, there were ceremonial signings of documents. Volkswagen signed a memorandum of understanding on the subject of training skilled workers. Siemens, BMW and Daimler also made signatures in the presence of senior leaders. So the cherished ritual still exists, even though Robert Habeck has already spoken out against always giving such economic projects the immediate political blessing.
The EU Commission has presented its vision for economic risk reduction. With the economic security strategy, Brussels wants to strengthen its own production and supply chains – and prevent future-relevant technologies from flowing to authoritarian third countries, above all China or Russia. The strategy, presented in Brussels on Tuesday, is intended to bundle the de-risking announced by Commission President Ursula von der Leyen into a concrete, joint EU approach. This is the first time the EU has combined the issues of security and trade in a single strategy.
The EU Commission is keen to coordinate national approaches more effectively. The problem: A large part of the points mentioned in the strategy concern the competencies of the member states. EU politicians and interest groups are also already urging caution about implementing some of the ideas. In particular, a possible outbound investment screening is likely to provide much food for discussion. A concrete proposal is to be presented by the end of the year.
The EU Commission’s strategy is to remain open to further design. With member states and the European Parliament, it wants to develop “joint responses” to possible gaps “in the EU’s economic security arsenal,” the text says. The Commission has identified risks to the EU’s overarching economic security in the following areas:
The approach to responding to these risks is based on three pillars: promoting, protecting, partnering. Specific new announcements can be found in the chapter entitled “protection.”
The paper does not mention China directly. Von der Leyen and her fellow EU commissioners stressed several times on Tuesday that the strategy is independent of any particular country, but has a “geopolitical filter,” as Competition Commissioner Margrethe Vestager put it. If this filter were currently applied, only China and Russia would come out as target countries stressed the Dane, who was thus the only one of the three commissioners to clearly name the countries: “China poses particular concerns in terms of technology security and tech loss.” However, Vestager said the strategy was intended for the long term. In the future, the filter would then perhaps focus on different countries.
EU Foreign Policy Chief Josep Borrell sounded a completely different verbal horn. He reiterated several times that China was by no means a target country for the strategy. “We do not want to restrict the development, nor the prosperity of other countries,” the Spaniard said. Borrell did not endear himself to von der Leyen with a comment on the EU Commission Chief’s China policy speech in late March. “It was a very interesting speech, rich in content, and it was very much appreciated,” Borrell said. “But it does not define the position of the European Union.”
A fierce debate about the strategy seems already programmed. The European Parliament also urged caution: “Too many measures must not end in isolation. Otherwise, we will harm our economy more than we support and protect it,” said Daniel Caspary, Chairman of the CDU/CSU group and member of the EU Parliament’s Committee on International Trade.
Trade Committee Chairman Bernd Lange (SPD) warned against “following the US approach unconditionally” with the European strategy. “I don’t believe in using foreign investment as a political weapon. No company is forced to invest anywhere, certainly not where there is a risk of technology transfer,” Lange wrote on Twitter, referring to a possible screening of investments abroad.
“The EU Commission’s plans for economic security in Europe must not get out of hand in the direction of state-controlled foreign trade,” said DIHK Foreign Trade Director Volker Treier. Companies need support in the form of reliable trade rules and a regulatory environment with little bureaucracy to better diversify sales and supply sources, Treier stressed.
The economic security strategy is to be discussed with heads of state and government at next week’s EU summit.
Sinolytics is a European consulting and analysis company specializing in China. It advises European companies on their strategic orientation and concrete business activities in the People’s Republic.
The retail giant Alibaba has announced a surprising change in its top management: Daniel Zhang, longtime group Chief Executive, resigned from his post. Eddie Wu, previously head of the Taobao and Tmall platforms, takes over as CEO, the company announced Tuesday. Joseph Tsai, previously a deputy on the board, will become Chairman.
The change comes at a critical time for Alibaba. The group is undergoing the largest restructuring in its history. The previous structure is to be broken up into six companies. The logistics and food divisions are to be floated separately on the stock market, and the cloud business is to be outsourced. Zhang would like to continue to lead this area, which is particularly important for the future of Alibaba.
The 51-year-old is a central figure in Alibaba’s history. He began his career at the online retail giant in August 2007, initially as Chief Financial Officer of Taobao, one of the company’s core marketplaces. He quickly rose to the top post.
That is how Zhang invented the famous Singles Day on 11.11. (because the date consists only of the number one), which has since become the most successful online shopping day in the world. In 2015, Zhang was appointed Alibaba CEO. At that time, Alibaba founder Jack Ma began to withdraw more and more from day-to-day operations. When Ma also stepped down as head of the board of directors in 2019, Zhang took over the entire leadership. In contrast to the more flamboyant Ma, Zhang was always seen as reserved.
The current personnel reshuffle indicates that Alibaba wants to signal a new beginning on the one hand. On the other hand, the leadership continues to consist of long-time and close confidants of founder Ma. Both Joseph Tsai and Eddie Wu are co-founders of Alibaba and were already on board the group before Zhang.
In particular, the second part of Zhang’s tenure as Alibaba CEO was anything but easy. It was overshadowed by the turmoil surrounding Ma, who was targeted by the authorities. First, the authorities canceled the IPO of sister company Ant Group, followed by a crackdown that resulted in a record fine of the equivalent of $2.8 billion for Alibaba. Alibaba also lost market share to new competitors.
Zhang will remain in a key position in his role as cloud chief. He plans to make cloud computing and artificial intelligence more accessible to companies of all sizes and industries, according to Alibaba’s statement. Zhang picked an area where there is likely to be a lot of growth in the next few years. However, that is also where the fiercest competition is raging. Joern Petring
Rush hour at the train station in Nanjing, capital of Jiangsu Province: Thursday marks the start of the three-day Dragon Boat Festival and with it a boom in tourist traffic. Every year, on the fifth day of the fifth lunar month, colorful dragon boats race through the waterways of the ancient metropolis – a 2500-year-old tradition.
It was a memorable China Day in Berlin. Large parts of the governments of China and Germany gathered for the German-Chinese government consultations, led by the heads of government Olaf Scholz and Li Qiang.
The ministers agreed, for example, on more cooperation in climate protection. The meeting ended with what was supposed to be a press conference between Chancellor Scholz and Premier Li. But the Chinese guests had brought with them the custom of their home country: journalists were not allowed to ask questions. And this after Scholz had just praised the importance of a free press. On the outside, the Chancellor’s Office in Berlin looks nothing like the Great Hall of the People, but it seems to approximate it in spirit.
The actual talks were a bit like the visit of US Secretary of State Antony Blinken to Beijing the day before: a cautious approach, getting to know each other – and a determination of positions for relations. These are less tense between Berlin and Beijing than between the US and China.
But contradictions remained that day. While Li Qiang was promoting more investment and an entrepreneurial view of risks at the bilateral economic forum with entrepreneurs immediately after the consultations, the Office for the Protection of the Constitution was specifically warning against espionage from China. The intelligence agency’s timing could not have been better to contradict Li’s message as effectively as possible. In its new annual report, the agency called China the “greatest threat in terms of economic and scientific espionage as well as foreign direct investment in Germany.”
That is why companies and even some politicians are looking with interest to Brussels, where the EU Commission presented its de-risking strategy on Tuesday. Ideas for outbound investment screening are the main source of debate. Only Competition Commissioner Margrethe Vestager mentioned the word “China” in Brussels, as Amelie Richter reports. But the People’s Republic was the proverbial elephant in the room.
Olaf Scholz made no secret of his satisfaction with the German-Chinese government consultations at the Chancellor’s Office on Tuesday afternoon. Almost jovially, he placed his hand on the Chinese premier’s shoulder at the end of the joint press conference. Since journalists were not allowed to ask questions and only prefabricated statements were read out, the chancellor expressed it in this way: Look, we get along. Li Qiang and Olaf Scholz, China and Germany.
“Direct dialogue, personal conversation, a real exchange – all this is even more important than usual in these extraordinary times full of global challenges and crises,” Scholz said Tuesday, adding that direct contact contributes to a better understanding of each other and allows “to discuss issues where we have different opinions and differences in direct conversation.”
Officially, Germany has been pursuing the triad of partner, competitor and strategic rival vis-à-vis China, which has also been customary in the EU since 2019. And while many a Green minister sees rivalry above all in Beijing’s behavior, Scholz focused on China as a partner at the seventh German-Chinese government consultations.
Li and Scholz apparently also took the motto of the consultations seriously: Acting sustainably together. While Beijing has been groaning under an oppressive heat wave for weeks, Scholz cited the flood disaster in the Ahr Valley to emphasize the urgency of the fight against global warming. That’s why “close cooperation in the fight against climate change is a particular concern,” he said. Agreed was:
For example, Scholz promised to make industrial processes more climate-friendly, accelerate the energy transition, promote the switch to climate-friendly mobility and strengthen the circular economy. “Every ton of carbon we save makes a contribution to limiting global warming.” The chancellor also introduced the idea of a common global target for the use of renewable energies.
Of course, Scholz also pointed out the great importance of economic relations. “Our dynamic economic relations are an important and constitutive part of our relationship.” For this reason, he said, the third high-level German-Chinese financial dialogue will be held in Berlin this year.
However, there are certainly also problems: Access to the Chinese market and fair competitive conditions for German and other foreign companies in China remain challenges where he is pushing for concrete improvements, according to Scholz. “I have named some very concrete problems to my colleague that we are concerned about. A level playing field requires improvements here, which we want to strive for.” In addition, he said, the German supply chain law will apply from now on. And thus Scholz gave his Chinese partner Li Qiang the following advice: “Dignified production conditions, combined with an improvement in the human rights situation, are in both our interests.”
Marco Buschmann, the Federal Minister of Justice, also called for dialogue. In his area, the main issues are the rule of law and human rights. “We have many interests in common with China – and some points of view divide us,” said the FDP politician after his talks with his Chinese counterpart He Rong. For this very reason, he said, it is crucial to remain in dialogue. “The rule of law can only exist in harmony with the validity of human rights,” Bushman stressed.
However, it is not only trade relations that should be given new impetus, according to Scholz. But also scientific and social exchange. Or as it is called today: people-to-people. “The more we know about each other and the more open the exchange, the less room there is for misunderstanding,” Scholz said.
The problems on both sides are well known: Foreign journalists are less and less able to report freely from China, while China complains about Germany’s slow visa issuance. The German Foreign Office tells Table.Media: “We are making efforts to expand the number of appointments again through organizational measures and increased staffing. Whether the situation for reporters in China will also improve remains doubtful.
Li Qiang, for his part, expressed his gratitude for the hospitality and warm welcome on his first trip abroad as Chinese Premier. He said the government consultations had been very practice-oriented and highly effective. As important results for China, Li mentioned:
Li asserted, “China attaches great importance to the development of relations with Germany and with Europe.” Therefore, he said, they want to defend “true multilateralism” side by side. “We should steadily expand our cooperation and create even more momentum for our cooperation in smart manufacturing, EVs as well as green development.” China’s economy has regained significant momentum after the pandemic, Li stressed.
While Germany scores in science and technology, China has “a huge market, a complete industrial system and rich human resources.” As Li and Scholz smiled at each other, it seemed possible to read their minds: The conditions fit each other perfectly. It would be almost reprehensible not to take advantage of this potential.
But that would be too much of a perfect world. Reality consists not only of announcements and wishes but also of tangible problems. One example: Scholz did address the war in Ukraine and pointed out China’s responsibility to exert more influence on Russia, not to supply weapons and to preserve Ukraine’s territorial integrity and sovereignty. But Li did not respond to this publicly with a single syllable.
And thus remains: The chemistry between Li Qiang and Olaf Scholz seems to be right. For both, these were their first German-Chinese consultations as heads of government. It seemed like a friendly meeting to get to know each other. But real dialogue also involves solving problems. Here, the list of missing players is particularly interesting: both the defense ministers and the foreign minister were unable to attend.
Also absent was a critical inquiry. It is to be hoped that Scholz did this behind closed doors. Because during his joint appearance with Li Qiang in the Federal Chancellery, the present journalists were not allowed any follow-up questions.
The current government consultations have also been followed by a meeting of industry representatives with the two heads of government. The 11th Sino-German Forum for Economic and Technological Cooperation was held in Berlin on Tuesday. Present were the heads or high-ranking representatives of the companies
As expected, Premier Li Qiang used the occasion to highlight the openness of the Chinese market. Globalization is profitable for all sides, Li said. China welcomes international companies.
Li also showed, however, that he is familiar with the discussion in Germany, at least in outline. He elaborated on his interpretation of the term “de-risking,” which is currently being touted as a universal solution by all European China strategists. “Risk prevention and cooperation are not opposites,” he told the CEOs, according to the report by the state news agency Xinhua. The state should leave risk assessment to companies; they are best placed for this, Li said.
Some business representatives were certainly happy to hear this; the present Chancellor Olaf Scholz probably was less enthusiastic. In its new security strategy, his government is focusing on de-risking, and the Federal Office for the Protection of the Constitution has just pointed out considerable risks of industrial espionage.
Conversely, China sees no risks in German products, Li flattered the audience at the Ministry of Economics. All of his company cars were Audis. And in Chinese hospitals, he had been examined with German equipment and had always felt safe.
A failure of cooperation was the greatest risk, the prime minister touted in favor of continued engagement in his country. While he expressed understanding for Germany’s security concerns, he complained that the risks had so far only been defined vaguely. Especially in uncertain times, he said, it is important to rely on established partners. Moreover, he expressed a lot in set pieces of Chinese phrases from economic policy.
But by starting with individual business and personal risks, Li misses the real meaning of “de-risking.” The EU and the German government’s use of the term is about the risk of dependence on China as a whole. These threats were revealed during the pandemic, when masks and paracetamol were missing, and then again after the Russian aggression against Ukraine when gas was missing. Federal Chancellor Scholz also pointed this out. He hastened to note, however, that reducing risks does not mean turning away from globalization.
The elephant in the room, which no one mentioned, is not the continuation of normal trade relations – here, the risks would actually be well manageable – but the disaster scenario of a Chinese attack on Taiwan. Germany must play out these scenarios for itself. In this light, Li’s insistence on a less relevant variant of risk reduction resembled a farce.
Li appeared before the German bosses fully aware of how important the Chinese market remains for many of them. He stressed he expected the entrepreneurs to continue acting as ambassadors of the Sino-German friendship.
Those present knew, as did Li, that dependence on supplies from China would continue unchanged. This is also underpinned by a study by the Institute of the German Economy (IW), first reported by Handelsblatt. Even more computers, even more raw materials, even more consumer goods are coming from China than ever before.
This type of dependency can be reduced by diversifying providers. But this will take time. The formulation of a China strategy by the German government, which is expected at the beginning of July, can hardly change this reality in the short term.
German business representatives accordingly agreed with Li and emphasized the partnership between the two countries. According to Xinhua, they expressed their “conviction” that China would stick to the opening up. Certainly, Li was also pleased to hear the announcement that investment in China will be increased. There was no word on how that would square with the German chancellor’s de-risking strategy. As is well known, questions were not permitted.
The business dialog has been part of the format since the first consultations. Likewise, it has been part of it from the beginning that the business leaders sit somewhat stiffly and present the problems of their industry in a restrained-indirect manner. This time, too, they voiced several familiar complaints, including a lack of intellectual property protection, IT security and market access barriers. Siemens CEO Roland Busch, in his role as Chairman of the Asia-Pacific Committee of German Business, called for a “level playing field,” but also called Li’s visit “good and appropriate.”
As is so often the case with government contacts with China, there were ceremonial signings of documents. Volkswagen signed a memorandum of understanding on the subject of training skilled workers. Siemens, BMW and Daimler also made signatures in the presence of senior leaders. So the cherished ritual still exists, even though Robert Habeck has already spoken out against always giving such economic projects the immediate political blessing.
The EU Commission has presented its vision for economic risk reduction. With the economic security strategy, Brussels wants to strengthen its own production and supply chains – and prevent future-relevant technologies from flowing to authoritarian third countries, above all China or Russia. The strategy, presented in Brussels on Tuesday, is intended to bundle the de-risking announced by Commission President Ursula von der Leyen into a concrete, joint EU approach. This is the first time the EU has combined the issues of security and trade in a single strategy.
The EU Commission is keen to coordinate national approaches more effectively. The problem: A large part of the points mentioned in the strategy concern the competencies of the member states. EU politicians and interest groups are also already urging caution about implementing some of the ideas. In particular, a possible outbound investment screening is likely to provide much food for discussion. A concrete proposal is to be presented by the end of the year.
The EU Commission’s strategy is to remain open to further design. With member states and the European Parliament, it wants to develop “joint responses” to possible gaps “in the EU’s economic security arsenal,” the text says. The Commission has identified risks to the EU’s overarching economic security in the following areas:
The approach to responding to these risks is based on three pillars: promoting, protecting, partnering. Specific new announcements can be found in the chapter entitled “protection.”
The paper does not mention China directly. Von der Leyen and her fellow EU commissioners stressed several times on Tuesday that the strategy is independent of any particular country, but has a “geopolitical filter,” as Competition Commissioner Margrethe Vestager put it. If this filter were currently applied, only China and Russia would come out as target countries stressed the Dane, who was thus the only one of the three commissioners to clearly name the countries: “China poses particular concerns in terms of technology security and tech loss.” However, Vestager said the strategy was intended for the long term. In the future, the filter would then perhaps focus on different countries.
EU Foreign Policy Chief Josep Borrell sounded a completely different verbal horn. He reiterated several times that China was by no means a target country for the strategy. “We do not want to restrict the development, nor the prosperity of other countries,” the Spaniard said. Borrell did not endear himself to von der Leyen with a comment on the EU Commission Chief’s China policy speech in late March. “It was a very interesting speech, rich in content, and it was very much appreciated,” Borrell said. “But it does not define the position of the European Union.”
A fierce debate about the strategy seems already programmed. The European Parliament also urged caution: “Too many measures must not end in isolation. Otherwise, we will harm our economy more than we support and protect it,” said Daniel Caspary, Chairman of the CDU/CSU group and member of the EU Parliament’s Committee on International Trade.
Trade Committee Chairman Bernd Lange (SPD) warned against “following the US approach unconditionally” with the European strategy. “I don’t believe in using foreign investment as a political weapon. No company is forced to invest anywhere, certainly not where there is a risk of technology transfer,” Lange wrote on Twitter, referring to a possible screening of investments abroad.
“The EU Commission’s plans for economic security in Europe must not get out of hand in the direction of state-controlled foreign trade,” said DIHK Foreign Trade Director Volker Treier. Companies need support in the form of reliable trade rules and a regulatory environment with little bureaucracy to better diversify sales and supply sources, Treier stressed.
The economic security strategy is to be discussed with heads of state and government at next week’s EU summit.
Sinolytics is a European consulting and analysis company specializing in China. It advises European companies on their strategic orientation and concrete business activities in the People’s Republic.
The retail giant Alibaba has announced a surprising change in its top management: Daniel Zhang, longtime group Chief Executive, resigned from his post. Eddie Wu, previously head of the Taobao and Tmall platforms, takes over as CEO, the company announced Tuesday. Joseph Tsai, previously a deputy on the board, will become Chairman.
The change comes at a critical time for Alibaba. The group is undergoing the largest restructuring in its history. The previous structure is to be broken up into six companies. The logistics and food divisions are to be floated separately on the stock market, and the cloud business is to be outsourced. Zhang would like to continue to lead this area, which is particularly important for the future of Alibaba.
The 51-year-old is a central figure in Alibaba’s history. He began his career at the online retail giant in August 2007, initially as Chief Financial Officer of Taobao, one of the company’s core marketplaces. He quickly rose to the top post.
That is how Zhang invented the famous Singles Day on 11.11. (because the date consists only of the number one), which has since become the most successful online shopping day in the world. In 2015, Zhang was appointed Alibaba CEO. At that time, Alibaba founder Jack Ma began to withdraw more and more from day-to-day operations. When Ma also stepped down as head of the board of directors in 2019, Zhang took over the entire leadership. In contrast to the more flamboyant Ma, Zhang was always seen as reserved.
The current personnel reshuffle indicates that Alibaba wants to signal a new beginning on the one hand. On the other hand, the leadership continues to consist of long-time and close confidants of founder Ma. Both Joseph Tsai and Eddie Wu are co-founders of Alibaba and were already on board the group before Zhang.
In particular, the second part of Zhang’s tenure as Alibaba CEO was anything but easy. It was overshadowed by the turmoil surrounding Ma, who was targeted by the authorities. First, the authorities canceled the IPO of sister company Ant Group, followed by a crackdown that resulted in a record fine of the equivalent of $2.8 billion for Alibaba. Alibaba also lost market share to new competitors.
Zhang will remain in a key position in his role as cloud chief. He plans to make cloud computing and artificial intelligence more accessible to companies of all sizes and industries, according to Alibaba’s statement. Zhang picked an area where there is likely to be a lot of growth in the next few years. However, that is also where the fiercest competition is raging. Joern Petring
Rush hour at the train station in Nanjing, capital of Jiangsu Province: Thursday marks the start of the three-day Dragon Boat Festival and with it a boom in tourist traffic. Every year, on the fifth day of the fifth lunar month, colorful dragon boats race through the waterways of the ancient metropolis – a 2500-year-old tradition.
