Table.Briefing: China

Interview with Sigmar Gabriel + Dombrovskis in Beijing

Dear reader,

EU Commission Vice-President Valdis Dombrovskis awaits anything but an easy start to the week at the trade dialogue in Beijing this Monday. The agenda is riddled with delicate issues: EU-China relations were already strained before another sticking point was added with the anti-dumping investigations into Chinese EVs. The high trade deficit will also be a topic, Dombrovskis calls it “very unbalanced.” Amelie Richter takes a closer look at the difficult talks.

Sigmar Gabriel has a clear opinion on the EU’s anti-dumping investigations – as well as on the diplomatic skills of his successor in the post of German Foreign Minister, Annalena Baerbock. “If you kick the Chinese in the shins from Monday to Friday like Ms Baerbock, you won’t get far,” he says in an in-depth interview with Michael Radunski and Stefan Braun. The conversation also focuses on Germany’s role in the Indo-Pacific and a potential Chinese assault on Taiwan.

Professor Bjoern Alpermann from the University of Wuerzburg has been researching China’s minority policy in Tibet and Xinjiang for years. In light of the debate about the controversial Xinjiang opinion piece by two China researchers, he takes a critical look at German sinology. The field struggles with a lack of new talent, yet China expertise is currently in greater demand than ever before. In his opinion piece, Alpermann proposes how the discipline can gain more credibility.

Your
Julia Fiedler
Image of Julia  Fiedler

Interview

‘If you kick the Chinese in the shins from Monday to Friday like Mrs Baerbock, you won’t get far’

Sigmar Gabriel was Germany’s foreign minister for many years. He is now chairman of the Atlantic Bridge.

Mr Gabriel, Annalena Baerbock is adopting a new tone towards Beijing. Some say that frank words are finally being used. Others warn that this will achieve nothing. As a former foreign minister, what is your take on how we should behave towards China?

You don’t have to have studied politics to know: If you only criticize and castigate a country in every interview, in every conversation, in every public appearance, then you cannot expect a pleasant conversational atmosphere when meeting face to face. How do we want to strengthen international climate action without China?

What way would be better?

We should follow the example of the United States and recognize that you face a difficult dilemma with China: On the one hand, China is a strategic rival; on the other hand, there are issues that we solve in the world without China. However, if you kick the Chinese in the shins from Monday to Friday like Mrs Baerbock, you won’t get far. The art of diplomacy is to remain in dialogue with those who have completely different values from our own. You don’t have to refrain from criticism in the process. But if Willy Brandt or Helmut Kohl had talked about the Soviet Union like that, achieving the unification of Germany would probably have been more difficult or would not have happened at all.

So, was Ms. Baerbock wrong to call the Chinese party and state leader Xi Jinping a dictator?

The Foreign Minister shows off herself and her values with this characterization. She is free to do that. But the question must be allowed: Does this labeling, which China perceives as an insult, help? Does it change anything in China? No. Does it make us interesting interlocutors? No. Do we represent German interests with it? Only if we understand our interests exclusively in normative terms.

So what should we do?

We are currently seeing China attempting to become the voice of the Global South. I would do all I can to make offers to the countries of the Global South. Without lecturing them normatively, by the way. The German Chancellor is actually showing how it can be done. I think that’s right. And as far as China is concerned, I would follow the examples of the Australians, the Japanese and the South Koreans. They are in a harsh security policy confrontation with China, yet they share the world’s largest free trade zone.

But the German ministers are all holding talks – including Ms. Baerbock.

Surely. But it seems we take the direct talks less seriously than interviews, where we actually speak to our voters. Once again, I would refer to the US: Take a clear line, but also do everything possible to establish a solid foundation for dialogue with the Chinese. US National Security Advisor Jake Sullivan and his Chinese counterpart have spoken for 16 hours without much mention in the newspapers. Foreign policy with a megaphone tends to have only a domestic reach.

Different political styles: Chancellor Olaf Scholz and Foreign Minister Annalena Baerbock.

Is this the different accentuation between values- and interest-driven foreign policy?

I think the debate about values or interests is nonsense. It is always about both. You must not lose your compass and know that you must treat democracies and dictatorships differently. But we also have interests. The French and the British say: values apply internally, interests externally.

Isn’t that a bit too easy?

Of course, you can’t make it that simple for yourself. But we must learn to express our interests in the world and not be ashamed of them. In our country, many people live from the automobile industry. A large part of our prosperity has to do with it. However, representing the needs of this industry is slandered in the German media as lobbying, in a way that no other country in the world would do. To constantly defame the struggle to ensure that the Chinese car market is maintained as lobbying for the car industry shows a relatively limited knowledge about where Germany’s prosperity comes from. And also, by the way, what the prosperity of many Eastern European neighbors is based on.

The EU wants to investigate suspected subsidies to the Chinese car industry. A mistake? Some say that liberal rules apply and that China must abide by them. On the other hand, the German car industry fears that Brussels will destroy its business in China.

Investigating this suspicion is the right thing to do. Depending on the outcome, negotiations with the Chinese side may be necessary. My experience is that attempts to tackle economic difficulties with China through anti-dumping duties usually backfire. Germany is a popular country for Chinese countermeasures. The danger of such measures is that we end up in a spiral of protectionist measures. And a country like Germany always faces bigger problems than other parts of Europe.

What would be the right approach?

It is certainly necessary to remind China to comply with WTO standards and, if necessary, to take legal action. But this will probably not help in the long run. Europe and Germany have always fared well when we relied on our own strengths: expanding the internal market, improving investment conditions, especially for research and technology, implementing the Capital Markets Union, driving forward the single energy market. And we need to reform our planning and licensing laws. We have significantly expanded the individual appeals rights against planned infrastructure measures and thus narrowed the scope for political action considerably. Today, complaints are lodged against everything: from bicycle paths to railway lines to wind farms. We need to bring this back into balance.

Let’s go back to dealing with China. Its Minister of Defense has just been ousted. Before that, the foreign minister and important generals had to go. How to deal with such a country?

We do not know the reasons. Often, it’s accusations of corruption. We should focus on our concerns, for example, that German companies in China retain their intellectual property rights.

Here, Beijing replies: You want and want but offer nothing.

Oh, we have offered quite a lot and continue to do so. The liberalization of global markets, international division of labor, everything we mean by the term globalization, is what enabled China’s rise in the first place. What matters is that everyone plays by the same rules. That’s not too much to ask for.

And now China feels so strong that it is demanding more.

On the contrary, I believe that China is currently in a weak phase. Not only because of the mistakes of the zero-Covid strategy, but, above all, because of the massive demographic change in China. China is aging before it gets rich. However, possible social tensions also harbor risks.

Why?

Countries that are economically weak and where people grow dissatisfied often look for a foreign enemy.

At this point, many fear that Xi Jinping could now make a foreign policy move against Taiwan due to internal weakness. How great is the risk?

You have to know that in the early 1970s, we all accepted that the People’s Republic of China represented the whole of China, including Taiwan. Before 1971, it was the other way round: up to then, the Republic of China, i.e., Taiwan, represented the whole of China. Thus, the so-called One-China policy is not an invention of the People’s Republic. This results in the bizarre situation that Taiwan actually belongs to China under international law. However, de facto Taiwan is a vibrant and diverse democracy that is prospering economically and has less and less to do with the mainland. In the past, we have done well by maintaining this paradoxical status. Any attempt to change it makes the situation more volatile.

The number of warships in the Indo-Pacific is increasing dramatically; here, the aircraft carrier USS Ronald Reagan. This increases the danger of so-called unintended conflicts.

But isn’t China threatening to change this status quo with warships and military exercises?

Yes, of course. Still, I am more concerned about the emergence of so-called unintended conflicts than about an actual attack by China on Taiwan. The People’s Republic is still too weak for that. But there are simply many warships sailing around there, and unlike during the Cold War in Europe, there are practically no conflict management systems. The Australians, who are much closer to this conflict than we are, therefore propose to set up such conflict management structures to prevent military escalations in cases of conflict. I think that is a wise suggestion.

For instance?

Above all, it is about quick information and transparency. But both sides have to be willing to do this. The situation in Europe during the Cold War was good insofar as both sides accepted that the other side existed on their own doorstep and, therefore, had to come to terms with it. This is not the case in the Taiwan Strait and the South China Sea. China does not accept the presence of the United States. That is why the US is strengthening its alliances with Australia, South Korea, Japan and others. Many countries in the region do not want Chinese dominance.

So, does it make sense for Germany to step up its security involvement in Asia and dispatch its frigate Bavaria?

I believe the US would rather expect us to ease the pressure in Europe, the Mediterranean and Africa, and not in the Indo-Pacific. That is not our turf.

But staying out of Asia completely would probably also be wrong. How should Germany engage with the region instead?

First of all, it is probably about learning much more about this region and about the Indo-Pacific. We don’t really know that much. So I would advise working much more closely with Australia, Japan and South Korea. These countries have massive problems with China in terms of security policy. At the same time, they are all in the largest free trade zone in the world. That is astonishing. These countries are wise advisors when it comes to dealing with China.

Is all this also an indication of general geopolitical shifts?

They are in full swing already. Two-thirds of humanity lives in the Indo-Pacific, two-thirds of the national product is generated there, with five countries now having nuclear weapons. 600 years of Eurocentricity are over. The world’s center of gravity is no longer the Atlantic, but the Indo-Pacific. What has now come to an end, somewhat belatedly, is the post-war order of the Second World War. Many countries that are important today sat at the side table. Until recently, we called them the Third World. These countries now demand their rights and no longer want to subordinate themselves to Western leadership.

What exactly are you basing this on?

The “no” to the sanctions against Russia from many countries of the Global South is a very loud “no” against the USA and against what we proudly call the West, but which, in the eyes of many other countries of the Global South, is only a synonym for their old colonial masters. This opposition to the West’s, and especially the United States’, claim to leadership is what unites these countries. Otherwise, even the members of the BRICS are not exactly best friends, for example, just think of the conflicts between India and China.

And what new order will emerge?

If you ask these countries that, you will not get just one answer. What unites the BRICS countries and their new members are usually economic interests. Or the attempt to build up regional security structures of their own, because the USA is no longer available without restrictions. This can be observed, for example, in the Middle East. For us Europeans, the problem is that we don’t play a role anywhere. In view of these tectonic shifts in the world’s power axes, Europe faces the threat of provincialization.

So, what is your prognosis?

As Europeans, we have our fate in our own hands. Germany and France are still in a position to dare a fresh start. And as far as the international order is concerned, we are probably going through a decade of uncertainty and instability. Preparing our people for this is a necessary condition for passing through it. And internationally, I would be happy if we could at least manage to re-establish a rule-based order with minimum standards like: You don’t invade your neighbor with tanks. But I fear that we will not see a liberal world order again any time soon. Michael Radunski and Stefan Braun

  • Annalena Baerbock
  • Geopolitics
  • Sigmar Gabriel

Dombrovskis ahead of trade dialogue: ‘The EU must protect itself’

EU Commission Vice President Valdis Dombrovskis expects difficult talks in Beijing at the start of the week.

EU trade chief Valdis Dombrovskis has criticized trade with the People’s Republic as “very unbalanced” before meeting with China’s Vice Premier He Lifeng. The EU’s trade deficit is currently almost 400 billion euros per year out of a total trade volume of 865 billion euros. The Latvian native said this in a speech in Shanghai on Saturday at the Bund Summit financial forum.

“The EU also needs to protect itself in situations when its openness is abused. Our recent strategy on economic security aims to maximize the benefits of openness, while minimizing our strategic dependences and vulnerabilities,” said the EU commissioner.

Dombrovskis thus sets a confident tone for the EU in the run-up to the trade dialogue meeting. “We welcome global competition. But it must be conducted fairly.” Brussels is not planning to completely decouple from China – but de-risking is still necessary, Dombrovskis said. “Let me stress: de-risking is not decoupling. And the EU has no intention of decoupling from China.”

Many tough issues on the agenda

The EU trade commissioner will attend the 10th EU-China Trade Dialogue in Beijing on Monday. It is the first meeting of its kind to be held offline once again. In July 2022, the trade dialogue was held as a video call, at that time, with Vice Premier Liu He. The agenda for the meeting is packed. Besides the trade deficit mentioned by Dombrovskis, other important topics include:

  • The elephant in the room is the EU Commission’s announced investigation into Chinese EV subsidies. Beijing already threatened to take countermeasures. But not all EU states support the plan either: Germany is particularly skeptical.
  • The EU Semiconductor Initiative entered into force last week. Brussels wants to become more independent of China when it comes to chip production. China is upset about a planned export ban for the semiconductor machine manufacturer ASML in the Netherlands.
  • The Chinese anti-espionage law complicates the exchange of data for European companies. In a position paper last week, the EU Chamber of Commerce listed more than 1,000 recommendations for the Chinese side. Criticism was aimed at the vaguely formulated requirements. The Chamber of Commerce hoped Dombrovskis would make a strong statement.
  • Russia’s war of aggression on Ukraine and its impact on global trade.
  • Several dispute negotiations are ongoing between the EU and China at the World Trade Organisation, one of them concerning the de facto trade embargo against Lithuania, the home country of the EU trade commissioner.
  • Brussels had recently pushed ahead with de-risking and wants to increasingly detach itself from China when it comes to strategically critical raw materials. Last week, EU institutions already started their negotiations, the trilogue, on the draft legislation of the Critical Raw Materials Act.

In his Shanghai speech, Dombrovskis stressed that the EU wants to minimize dependencies for “a select number of strategic products” to maintain the bloc’s “open strategic autonomy.” However, he emphasized that global crises such as climate change should be tackled together. He ended his speech by calling on China to alleviate the debt burden of developing countries. These would have suffered from the recent interest rate hikes.

The Chinese propaganda newspaper Global Times called Dombrovskis’ trip and the trade dialogue a “litmus test” for both sides to smooth out differences. Among other things, the newspaper cited the planned ban on Huawei and ZTE in Germany as an example of the current problems.

Dombrovskis also met with Shanghai Mayor Gong Zheng over the weekend. Foreign companies contribute to the metropolis’ success, generating a quarter of GDP and accounting for eleven percent of jobs, the EU commissioner wrote on X, formerly Twitter. “With a more predictable and open business environment, we can do even better.”

In addition, Dombrovskis visited the German brake systems manufacturer Knorr-Bremse in Suzhou. The EU Commissioner is expected to make a press appearance after the trade dialogue on Monday. In Beijing, he is also scheduled to address students at Tsinghua University, the alma mater of China’s leader Xi Jinping.

  • CRMA

News

Capital controls relaxed for Shanghai

Against the backdrop of declining foreign investment and a difficult economic situation, China is taking measures to win back foreign companies: As the Chinese news magazine Caixin reports, Beijing relaxes strict capital control measures in some instances.

Shanghai’s pilot free trade zone and the Lingang economic hub will allow foreign investors to freely transfer investment-related funds into and out of China without delay. The prerequisite is that the money is “genuine and compliant,” according to regulations that came into force on 1 September.

Employees of foreign companies based in these areas, including workers from Hong Kong, Macau or Taiwan, can freely transfer their wages and other legal income out of the country per the law. Beijing has proposed similar regulations for the entire city. In addition, re-investment of foreign companies could be exempted from foreign exchange registration.

The State Council issued a 24-point plan in August to attract foreign companies with promises of better tax treatment and facilitating visas for their employees. Ongoing tensions with the West, global companies’ search for alternatives to China and China’s economic slowdown are leading to a significant outflow of capital, 49 billion US dollars in August alone, the most since December 2015. The pressure on the yuan is thus intensifying. jul

  • Economic policy
  • Investments
  • Shanghai

Uyghur researcher gets life sentence

Renowned Uyghur academic Rahile Dawut has been sentenced to life in prison in China. This was announced by the California-based human rights group Dui Hua, which campaigns for persecuted and oppressed people in China. Dawut was arrested six years ago at the height of the Chinese government’s anti-terror campaign in the Xinjiang autonomous region. The professor, now 57, is accused of endangering state security by attempting “splittism.” Dawut had filed an appeal against her sentence with the Supreme People’s Court of the Xinjiang Uyghur Autonomous Region. However, the appeal has been rejected.

The former professor at Xinjiang University was considered a leading scholar in the field of Uyghur folklore. She is among more than 300 well-known intellectuals, artists, and writers believed to be detained in Xinjiang. Her daughter pleaded via the human rights organization to the government to release her mother: “The thought of my innocent mother having to spend her life in prison brings unbearable pain. China, show your mercy and release my innocent mother.” fpe

Biden meets leaders of Pacific island nations

US President Biden has invited leaders of Pacific island nations to a summit meeting this week after the cancellation of a planned May meeting in Papua New Guinea. It is the second meeting of its kind. Last year, Biden met with 14 Pacific island nations for the first time and pledged support in fending off China’s “economic coercion.” In a joint statement, the United States and Pacific island nations agreed to strengthen their partnership. In 2022, the White House also announced that the US would invest more than 810 million US dollars in programs to support the Pacific islands.

At this week’s three-day summit, the US will announce further infrastructure investments, including improvements to Internet connectivity via submarine cables. In addition, the Cook Islands and the small Pacific island nation of Niue are to receive official diplomatic recognition. According to the White House, other topics at the meeting include climate change, economic growth, sustainable development, public health and fighting illegal fishing.

Relations with island states vary

Manasse Sogavare, the Solomon Islands prime minister, will not attend the summit. The country has been deepening its relations with China; in July, Sogavare signed an agreement in Beijing on police cooperation, among other things, that builds on the security pact the Solomon Islands signed with China last year. Sato Kilman, Vanuatu’s prime minister, also will be absent from the summit. China is the largest foreign creditor to the country, which also signed a police agreement with Beijing last month. The United States is still negotiating the opening of an embassy in Vanuatu, but has not significantly increased its engagement with the country.

Fiji welcomes the increased US regional presence, saying it makes the Pacific “safer.” US ties to Palau and Micronesia are also good: The United States renewed agreements with them this year, giving the US exclusive military access to strategic parts of the Pacific. Meanwhile, a similar agreement with the Marshall Islands is stagnating as they demand more money from the United States to deal with the consequences of US nuclear testing in the 1940s and 50s. rtr

  • Geopolitics
  • Indo-Pacific
  • Solomon Islands

China stops Hungarian BRI subproject

China has suspended work on the Sino-Hungarian Budapest-Belgrade railroad project. Simultaneously, the People’s Republic has also stopped its funding, the Austrian magazine “Die Presse” and Hungarian news website Telex report. The project is budgeted at around 750 billion forints (1.93 billion euros) and is part of the Belt & Road Initiative (BRI). The new rail line is expected to reduce travel time on the 340-kilometer route between the two cities from eight to three hours.

The Hungarian construction company involved has reportedly partially withdrawn its involvement in favor of a different construction project. However, the Chinese partners apparently cannot complete the project without the Hungarian company because they cannot implement the Europe-wide standardized train control system (ETCS). The rail project is expected to be one of the topics during Hungarian Prime Minister Viktor Orbán’s trip to China in October. jul

  • Neue Seidenstraße

Xi woos Han

According to the South China Morning Post, China and South Korea should “meet each other halfway” and improve the integration of their supply chains, Chinese President Xi Jinping told South Korean Prime Minister Han Duck-soo. Han was invited to the Asian Games in Hangzhou and met Xi on Saturday before the opening ceremony. He is the highest-ranking South Korean official Xi has met since he met President Yoon Suk-yeol in Indonesia last November.

Xi called China and South Korea friendly neighbors and “inseparable” economic partners and called for mutual respect and increased communication, the Chinese Foreign Ministry said. According to South Korea’s Yonhap news agency, Xi told Han he was “seriously” considering visiting South Korea. The Chinese leader has not been to the country since 2014.

A high-level meeting between South Korea, China and Japan will be held in Seoul this week. South Korean media report that the meeting is intended to pave the way for the first summit meeting of the heads of state and government in four years. The summit is to take place before the end of 2023. Relations between the three Asian countries have been strained due to intensifying rivalry between the United States and China.

Beijing has grown increasingly frustrated with the growing alliance between the United States, Japan and South Korea. Relations between Beijing and Seoul have become even more complicated in recent months. In April, Yoon angered Beijing with remarks calling Taiwan a “global problem” comparable to North Korea. cyb

  • Geopolitics
  • South Korea
  • USA

Opinion

‘Not that too!’

By Bjoern Alpermann
Professor Dr. Bjoern Alpermann holds the Chair of Contemporary Chinese Studies at the University of Wuerzburg.

Many sinologists may have thought, “Not that, too!” when the debate about the controversial Xinjiang opinion piece by renowned experts Thomas Heberer and Helwig Schmidt-Glintzer erupted last week.

The field has recently been going through a difficult phase. On the one hand, it is plagued by concerns about new talent, which can be blamed primarily on the political leadership in Beijing. Regardless of its actions against various democracy movements in Hong Kong since 2014, the persecution of ethnic minorities, threats against democratic Taiwan, territorial claims against neighbors, or the stifled economy due to “zero COVID,” negative reporting always decreases interest in China among new students.

Instead of learning Chinese, young East Asian enthusiasts prefer to turn to Korea and Japan, which offer more attractive cultural exports in the form of K-pop and manga. The fact that China almost completely closed itself off to visitors during the three years of the pandemic was equally fatal.

China expertise is more in demand than ever

Yet, China expertise is in higher demand than ever in politics and the media, which is not surprising given the increasing economic and global political significance of the People’s Republic of China. Everyone involved in the discussion agrees that more China expertise is needed, although the consensus reaches its end when it comes to defining it.

Sinology thus faces an unbalanced demand situation that requires difficult adjustments. Conflicting goals have to be pursued. On the one hand, attempts are being made to attract more attention to China in schools – not only in order to recruit young students, but also because knowledge of the “Global South” is generally poor in Germany. On the other hand, academic sinology should position itself more strongly for political consulting and media work, but not neglect its important basic research. In view of low staffing numbers, this is an extremely difficult mission.

In addition to all this, there is the credibility problem of sinology in the eyes of its critics (often China sinologists themselves, who, however, exclude themselves when they speak of “German sinology”). It is precisely those who have been dealing with the country for the longest time, who have the best contacts and can therefore gather a wide range of information, who these critics accuse of having conflicts of interest. They claim to have made themselves susceptible to blackmail, to be fed honorary titles and positions, invitations and privileged field access, in order to then engage in scientific “whitewashing” of CP positions.

In fact, individual representatives of this group (but by no means all of them) repeatedly stand out in the media with relativizing statements. Other social scientists insist that serious research on China should, wherever possible, rely on field research. Otherwise, it would depend solely on written sources, which are notoriously censored in China. They, too, are now often quickly placed in the corner of the “China apologists.”

The vast majority of social science researchers on China reflect very carefully on which field approaches involve which compromises, where “red lines” are, where there are blind spots and how to compensate for them, or how China’s new laws on data security and against espionage affect their empirical work. All these topics are regularly discussed in panels at symposia and in special workshops, and are picked up in publications on research ethics.

It is this kind of serious and objective discussion that needs to continue, even if Heberer and Schmidt-Glintzer’s Xinjiang travelogue seems to confirm the fears of critics regarding a pro-Beijing sinology. The reactions show that it does not represent the discipline as a whole. The swift objection that they reaped was important. But Sinology should be careful not to increasingly indulge in self-flagellation instead of constructively dealing with its challenges. Otherwise, it will fail to make the necessary adjustments to meet the challenges.

Bjoern Alpermann was born in 1972. He studied Modern Chinese Studies, Economics and Political Science at the University of Cologne and Nankai University, Tianjin. After a junior professorship at the University of Wuerzburg, Alpermann took over the chair of Contemporary Chinese Studies in 2013. One of his main areas of work deals with minority politics of the PRC in Xinjiang and Tibet. He regularly travels to the PRC for research visits.

Executive Moves

Xuefeng Chen will hand over the post of global CEO at California-based e-mobility company Faraday Future to longtime manager Matthias Aydt. Chen will return to China at the end of the month to resume his previous role as China CEO.

Is something changing in your organization? Let us know at heads@table.media!

China.Table editorial office

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    EU Commission Vice-President Valdis Dombrovskis awaits anything but an easy start to the week at the trade dialogue in Beijing this Monday. The agenda is riddled with delicate issues: EU-China relations were already strained before another sticking point was added with the anti-dumping investigations into Chinese EVs. The high trade deficit will also be a topic, Dombrovskis calls it “very unbalanced.” Amelie Richter takes a closer look at the difficult talks.

    Sigmar Gabriel has a clear opinion on the EU’s anti-dumping investigations – as well as on the diplomatic skills of his successor in the post of German Foreign Minister, Annalena Baerbock. “If you kick the Chinese in the shins from Monday to Friday like Ms Baerbock, you won’t get far,” he says in an in-depth interview with Michael Radunski and Stefan Braun. The conversation also focuses on Germany’s role in the Indo-Pacific and a potential Chinese assault on Taiwan.

    Professor Bjoern Alpermann from the University of Wuerzburg has been researching China’s minority policy in Tibet and Xinjiang for years. In light of the debate about the controversial Xinjiang opinion piece by two China researchers, he takes a critical look at German sinology. The field struggles with a lack of new talent, yet China expertise is currently in greater demand than ever before. In his opinion piece, Alpermann proposes how the discipline can gain more credibility.

    Your
    Julia Fiedler
    Image of Julia  Fiedler

    Interview

    ‘If you kick the Chinese in the shins from Monday to Friday like Mrs Baerbock, you won’t get far’

    Sigmar Gabriel was Germany’s foreign minister for many years. He is now chairman of the Atlantic Bridge.

    Mr Gabriel, Annalena Baerbock is adopting a new tone towards Beijing. Some say that frank words are finally being used. Others warn that this will achieve nothing. As a former foreign minister, what is your take on how we should behave towards China?

    You don’t have to have studied politics to know: If you only criticize and castigate a country in every interview, in every conversation, in every public appearance, then you cannot expect a pleasant conversational atmosphere when meeting face to face. How do we want to strengthen international climate action without China?

    What way would be better?

    We should follow the example of the United States and recognize that you face a difficult dilemma with China: On the one hand, China is a strategic rival; on the other hand, there are issues that we solve in the world without China. However, if you kick the Chinese in the shins from Monday to Friday like Mrs Baerbock, you won’t get far. The art of diplomacy is to remain in dialogue with those who have completely different values from our own. You don’t have to refrain from criticism in the process. But if Willy Brandt or Helmut Kohl had talked about the Soviet Union like that, achieving the unification of Germany would probably have been more difficult or would not have happened at all.

    So, was Ms. Baerbock wrong to call the Chinese party and state leader Xi Jinping a dictator?

    The Foreign Minister shows off herself and her values with this characterization. She is free to do that. But the question must be allowed: Does this labeling, which China perceives as an insult, help? Does it change anything in China? No. Does it make us interesting interlocutors? No. Do we represent German interests with it? Only if we understand our interests exclusively in normative terms.

    So what should we do?

    We are currently seeing China attempting to become the voice of the Global South. I would do all I can to make offers to the countries of the Global South. Without lecturing them normatively, by the way. The German Chancellor is actually showing how it can be done. I think that’s right. And as far as China is concerned, I would follow the examples of the Australians, the Japanese and the South Koreans. They are in a harsh security policy confrontation with China, yet they share the world’s largest free trade zone.

    But the German ministers are all holding talks – including Ms. Baerbock.

    Surely. But it seems we take the direct talks less seriously than interviews, where we actually speak to our voters. Once again, I would refer to the US: Take a clear line, but also do everything possible to establish a solid foundation for dialogue with the Chinese. US National Security Advisor Jake Sullivan and his Chinese counterpart have spoken for 16 hours without much mention in the newspapers. Foreign policy with a megaphone tends to have only a domestic reach.

    Different political styles: Chancellor Olaf Scholz and Foreign Minister Annalena Baerbock.

    Is this the different accentuation between values- and interest-driven foreign policy?

    I think the debate about values or interests is nonsense. It is always about both. You must not lose your compass and know that you must treat democracies and dictatorships differently. But we also have interests. The French and the British say: values apply internally, interests externally.

    Isn’t that a bit too easy?

    Of course, you can’t make it that simple for yourself. But we must learn to express our interests in the world and not be ashamed of them. In our country, many people live from the automobile industry. A large part of our prosperity has to do with it. However, representing the needs of this industry is slandered in the German media as lobbying, in a way that no other country in the world would do. To constantly defame the struggle to ensure that the Chinese car market is maintained as lobbying for the car industry shows a relatively limited knowledge about where Germany’s prosperity comes from. And also, by the way, what the prosperity of many Eastern European neighbors is based on.

    The EU wants to investigate suspected subsidies to the Chinese car industry. A mistake? Some say that liberal rules apply and that China must abide by them. On the other hand, the German car industry fears that Brussels will destroy its business in China.

    Investigating this suspicion is the right thing to do. Depending on the outcome, negotiations with the Chinese side may be necessary. My experience is that attempts to tackle economic difficulties with China through anti-dumping duties usually backfire. Germany is a popular country for Chinese countermeasures. The danger of such measures is that we end up in a spiral of protectionist measures. And a country like Germany always faces bigger problems than other parts of Europe.

    What would be the right approach?

    It is certainly necessary to remind China to comply with WTO standards and, if necessary, to take legal action. But this will probably not help in the long run. Europe and Germany have always fared well when we relied on our own strengths: expanding the internal market, improving investment conditions, especially for research and technology, implementing the Capital Markets Union, driving forward the single energy market. And we need to reform our planning and licensing laws. We have significantly expanded the individual appeals rights against planned infrastructure measures and thus narrowed the scope for political action considerably. Today, complaints are lodged against everything: from bicycle paths to railway lines to wind farms. We need to bring this back into balance.

    Let’s go back to dealing with China. Its Minister of Defense has just been ousted. Before that, the foreign minister and important generals had to go. How to deal with such a country?

    We do not know the reasons. Often, it’s accusations of corruption. We should focus on our concerns, for example, that German companies in China retain their intellectual property rights.

    Here, Beijing replies: You want and want but offer nothing.

    Oh, we have offered quite a lot and continue to do so. The liberalization of global markets, international division of labor, everything we mean by the term globalization, is what enabled China’s rise in the first place. What matters is that everyone plays by the same rules. That’s not too much to ask for.

    And now China feels so strong that it is demanding more.

    On the contrary, I believe that China is currently in a weak phase. Not only because of the mistakes of the zero-Covid strategy, but, above all, because of the massive demographic change in China. China is aging before it gets rich. However, possible social tensions also harbor risks.

    Why?

    Countries that are economically weak and where people grow dissatisfied often look for a foreign enemy.

    At this point, many fear that Xi Jinping could now make a foreign policy move against Taiwan due to internal weakness. How great is the risk?

    You have to know that in the early 1970s, we all accepted that the People’s Republic of China represented the whole of China, including Taiwan. Before 1971, it was the other way round: up to then, the Republic of China, i.e., Taiwan, represented the whole of China. Thus, the so-called One-China policy is not an invention of the People’s Republic. This results in the bizarre situation that Taiwan actually belongs to China under international law. However, de facto Taiwan is a vibrant and diverse democracy that is prospering economically and has less and less to do with the mainland. In the past, we have done well by maintaining this paradoxical status. Any attempt to change it makes the situation more volatile.

    The number of warships in the Indo-Pacific is increasing dramatically; here, the aircraft carrier USS Ronald Reagan. This increases the danger of so-called unintended conflicts.

    But isn’t China threatening to change this status quo with warships and military exercises?

    Yes, of course. Still, I am more concerned about the emergence of so-called unintended conflicts than about an actual attack by China on Taiwan. The People’s Republic is still too weak for that. But there are simply many warships sailing around there, and unlike during the Cold War in Europe, there are practically no conflict management systems. The Australians, who are much closer to this conflict than we are, therefore propose to set up such conflict management structures to prevent military escalations in cases of conflict. I think that is a wise suggestion.

    For instance?

    Above all, it is about quick information and transparency. But both sides have to be willing to do this. The situation in Europe during the Cold War was good insofar as both sides accepted that the other side existed on their own doorstep and, therefore, had to come to terms with it. This is not the case in the Taiwan Strait and the South China Sea. China does not accept the presence of the United States. That is why the US is strengthening its alliances with Australia, South Korea, Japan and others. Many countries in the region do not want Chinese dominance.

    So, does it make sense for Germany to step up its security involvement in Asia and dispatch its frigate Bavaria?

    I believe the US would rather expect us to ease the pressure in Europe, the Mediterranean and Africa, and not in the Indo-Pacific. That is not our turf.

    But staying out of Asia completely would probably also be wrong. How should Germany engage with the region instead?

    First of all, it is probably about learning much more about this region and about the Indo-Pacific. We don’t really know that much. So I would advise working much more closely with Australia, Japan and South Korea. These countries have massive problems with China in terms of security policy. At the same time, they are all in the largest free trade zone in the world. That is astonishing. These countries are wise advisors when it comes to dealing with China.

    Is all this also an indication of general geopolitical shifts?

    They are in full swing already. Two-thirds of humanity lives in the Indo-Pacific, two-thirds of the national product is generated there, with five countries now having nuclear weapons. 600 years of Eurocentricity are over. The world’s center of gravity is no longer the Atlantic, but the Indo-Pacific. What has now come to an end, somewhat belatedly, is the post-war order of the Second World War. Many countries that are important today sat at the side table. Until recently, we called them the Third World. These countries now demand their rights and no longer want to subordinate themselves to Western leadership.

    What exactly are you basing this on?

    The “no” to the sanctions against Russia from many countries of the Global South is a very loud “no” against the USA and against what we proudly call the West, but which, in the eyes of many other countries of the Global South, is only a synonym for their old colonial masters. This opposition to the West’s, and especially the United States’, claim to leadership is what unites these countries. Otherwise, even the members of the BRICS are not exactly best friends, for example, just think of the conflicts between India and China.

    And what new order will emerge?

    If you ask these countries that, you will not get just one answer. What unites the BRICS countries and their new members are usually economic interests. Or the attempt to build up regional security structures of their own, because the USA is no longer available without restrictions. This can be observed, for example, in the Middle East. For us Europeans, the problem is that we don’t play a role anywhere. In view of these tectonic shifts in the world’s power axes, Europe faces the threat of provincialization.

    So, what is your prognosis?

    As Europeans, we have our fate in our own hands. Germany and France are still in a position to dare a fresh start. And as far as the international order is concerned, we are probably going through a decade of uncertainty and instability. Preparing our people for this is a necessary condition for passing through it. And internationally, I would be happy if we could at least manage to re-establish a rule-based order with minimum standards like: You don’t invade your neighbor with tanks. But I fear that we will not see a liberal world order again any time soon. Michael Radunski and Stefan Braun

    • Annalena Baerbock
    • Geopolitics
    • Sigmar Gabriel

    Dombrovskis ahead of trade dialogue: ‘The EU must protect itself’

    EU Commission Vice President Valdis Dombrovskis expects difficult talks in Beijing at the start of the week.

    EU trade chief Valdis Dombrovskis has criticized trade with the People’s Republic as “very unbalanced” before meeting with China’s Vice Premier He Lifeng. The EU’s trade deficit is currently almost 400 billion euros per year out of a total trade volume of 865 billion euros. The Latvian native said this in a speech in Shanghai on Saturday at the Bund Summit financial forum.

    “The EU also needs to protect itself in situations when its openness is abused. Our recent strategy on economic security aims to maximize the benefits of openness, while minimizing our strategic dependences and vulnerabilities,” said the EU commissioner.

    Dombrovskis thus sets a confident tone for the EU in the run-up to the trade dialogue meeting. “We welcome global competition. But it must be conducted fairly.” Brussels is not planning to completely decouple from China – but de-risking is still necessary, Dombrovskis said. “Let me stress: de-risking is not decoupling. And the EU has no intention of decoupling from China.”

    Many tough issues on the agenda

    The EU trade commissioner will attend the 10th EU-China Trade Dialogue in Beijing on Monday. It is the first meeting of its kind to be held offline once again. In July 2022, the trade dialogue was held as a video call, at that time, with Vice Premier Liu He. The agenda for the meeting is packed. Besides the trade deficit mentioned by Dombrovskis, other important topics include:

    • The elephant in the room is the EU Commission’s announced investigation into Chinese EV subsidies. Beijing already threatened to take countermeasures. But not all EU states support the plan either: Germany is particularly skeptical.
    • The EU Semiconductor Initiative entered into force last week. Brussels wants to become more independent of China when it comes to chip production. China is upset about a planned export ban for the semiconductor machine manufacturer ASML in the Netherlands.
    • The Chinese anti-espionage law complicates the exchange of data for European companies. In a position paper last week, the EU Chamber of Commerce listed more than 1,000 recommendations for the Chinese side. Criticism was aimed at the vaguely formulated requirements. The Chamber of Commerce hoped Dombrovskis would make a strong statement.
    • Russia’s war of aggression on Ukraine and its impact on global trade.
    • Several dispute negotiations are ongoing between the EU and China at the World Trade Organisation, one of them concerning the de facto trade embargo against Lithuania, the home country of the EU trade commissioner.
    • Brussels had recently pushed ahead with de-risking and wants to increasingly detach itself from China when it comes to strategically critical raw materials. Last week, EU institutions already started their negotiations, the trilogue, on the draft legislation of the Critical Raw Materials Act.

    In his Shanghai speech, Dombrovskis stressed that the EU wants to minimize dependencies for “a select number of strategic products” to maintain the bloc’s “open strategic autonomy.” However, he emphasized that global crises such as climate change should be tackled together. He ended his speech by calling on China to alleviate the debt burden of developing countries. These would have suffered from the recent interest rate hikes.

    The Chinese propaganda newspaper Global Times called Dombrovskis’ trip and the trade dialogue a “litmus test” for both sides to smooth out differences. Among other things, the newspaper cited the planned ban on Huawei and ZTE in Germany as an example of the current problems.

    Dombrovskis also met with Shanghai Mayor Gong Zheng over the weekend. Foreign companies contribute to the metropolis’ success, generating a quarter of GDP and accounting for eleven percent of jobs, the EU commissioner wrote on X, formerly Twitter. “With a more predictable and open business environment, we can do even better.”

    In addition, Dombrovskis visited the German brake systems manufacturer Knorr-Bremse in Suzhou. The EU Commissioner is expected to make a press appearance after the trade dialogue on Monday. In Beijing, he is also scheduled to address students at Tsinghua University, the alma mater of China’s leader Xi Jinping.

    • CRMA

    News

    Capital controls relaxed for Shanghai

    Against the backdrop of declining foreign investment and a difficult economic situation, China is taking measures to win back foreign companies: As the Chinese news magazine Caixin reports, Beijing relaxes strict capital control measures in some instances.

    Shanghai’s pilot free trade zone and the Lingang economic hub will allow foreign investors to freely transfer investment-related funds into and out of China without delay. The prerequisite is that the money is “genuine and compliant,” according to regulations that came into force on 1 September.

    Employees of foreign companies based in these areas, including workers from Hong Kong, Macau or Taiwan, can freely transfer their wages and other legal income out of the country per the law. Beijing has proposed similar regulations for the entire city. In addition, re-investment of foreign companies could be exempted from foreign exchange registration.

    The State Council issued a 24-point plan in August to attract foreign companies with promises of better tax treatment and facilitating visas for their employees. Ongoing tensions with the West, global companies’ search for alternatives to China and China’s economic slowdown are leading to a significant outflow of capital, 49 billion US dollars in August alone, the most since December 2015. The pressure on the yuan is thus intensifying. jul

    • Economic policy
    • Investments
    • Shanghai

    Uyghur researcher gets life sentence

    Renowned Uyghur academic Rahile Dawut has been sentenced to life in prison in China. This was announced by the California-based human rights group Dui Hua, which campaigns for persecuted and oppressed people in China. Dawut was arrested six years ago at the height of the Chinese government’s anti-terror campaign in the Xinjiang autonomous region. The professor, now 57, is accused of endangering state security by attempting “splittism.” Dawut had filed an appeal against her sentence with the Supreme People’s Court of the Xinjiang Uyghur Autonomous Region. However, the appeal has been rejected.

    The former professor at Xinjiang University was considered a leading scholar in the field of Uyghur folklore. She is among more than 300 well-known intellectuals, artists, and writers believed to be detained in Xinjiang. Her daughter pleaded via the human rights organization to the government to release her mother: “The thought of my innocent mother having to spend her life in prison brings unbearable pain. China, show your mercy and release my innocent mother.” fpe

    Biden meets leaders of Pacific island nations

    US President Biden has invited leaders of Pacific island nations to a summit meeting this week after the cancellation of a planned May meeting in Papua New Guinea. It is the second meeting of its kind. Last year, Biden met with 14 Pacific island nations for the first time and pledged support in fending off China’s “economic coercion.” In a joint statement, the United States and Pacific island nations agreed to strengthen their partnership. In 2022, the White House also announced that the US would invest more than 810 million US dollars in programs to support the Pacific islands.

    At this week’s three-day summit, the US will announce further infrastructure investments, including improvements to Internet connectivity via submarine cables. In addition, the Cook Islands and the small Pacific island nation of Niue are to receive official diplomatic recognition. According to the White House, other topics at the meeting include climate change, economic growth, sustainable development, public health and fighting illegal fishing.

    Relations with island states vary

    Manasse Sogavare, the Solomon Islands prime minister, will not attend the summit. The country has been deepening its relations with China; in July, Sogavare signed an agreement in Beijing on police cooperation, among other things, that builds on the security pact the Solomon Islands signed with China last year. Sato Kilman, Vanuatu’s prime minister, also will be absent from the summit. China is the largest foreign creditor to the country, which also signed a police agreement with Beijing last month. The United States is still negotiating the opening of an embassy in Vanuatu, but has not significantly increased its engagement with the country.

    Fiji welcomes the increased US regional presence, saying it makes the Pacific “safer.” US ties to Palau and Micronesia are also good: The United States renewed agreements with them this year, giving the US exclusive military access to strategic parts of the Pacific. Meanwhile, a similar agreement with the Marshall Islands is stagnating as they demand more money from the United States to deal with the consequences of US nuclear testing in the 1940s and 50s. rtr

    • Geopolitics
    • Indo-Pacific
    • Solomon Islands

    China stops Hungarian BRI subproject

    China has suspended work on the Sino-Hungarian Budapest-Belgrade railroad project. Simultaneously, the People’s Republic has also stopped its funding, the Austrian magazine “Die Presse” and Hungarian news website Telex report. The project is budgeted at around 750 billion forints (1.93 billion euros) and is part of the Belt & Road Initiative (BRI). The new rail line is expected to reduce travel time on the 340-kilometer route between the two cities from eight to three hours.

    The Hungarian construction company involved has reportedly partially withdrawn its involvement in favor of a different construction project. However, the Chinese partners apparently cannot complete the project without the Hungarian company because they cannot implement the Europe-wide standardized train control system (ETCS). The rail project is expected to be one of the topics during Hungarian Prime Minister Viktor Orbán’s trip to China in October. jul

    • Neue Seidenstraße

    Xi woos Han

    According to the South China Morning Post, China and South Korea should “meet each other halfway” and improve the integration of their supply chains, Chinese President Xi Jinping told South Korean Prime Minister Han Duck-soo. Han was invited to the Asian Games in Hangzhou and met Xi on Saturday before the opening ceremony. He is the highest-ranking South Korean official Xi has met since he met President Yoon Suk-yeol in Indonesia last November.

    Xi called China and South Korea friendly neighbors and “inseparable” economic partners and called for mutual respect and increased communication, the Chinese Foreign Ministry said. According to South Korea’s Yonhap news agency, Xi told Han he was “seriously” considering visiting South Korea. The Chinese leader has not been to the country since 2014.

    A high-level meeting between South Korea, China and Japan will be held in Seoul this week. South Korean media report that the meeting is intended to pave the way for the first summit meeting of the heads of state and government in four years. The summit is to take place before the end of 2023. Relations between the three Asian countries have been strained due to intensifying rivalry between the United States and China.

    Beijing has grown increasingly frustrated with the growing alliance between the United States, Japan and South Korea. Relations between Beijing and Seoul have become even more complicated in recent months. In April, Yoon angered Beijing with remarks calling Taiwan a “global problem” comparable to North Korea. cyb

    • Geopolitics
    • South Korea
    • USA

    Opinion

    ‘Not that too!’

    By Bjoern Alpermann
    Professor Dr. Bjoern Alpermann holds the Chair of Contemporary Chinese Studies at the University of Wuerzburg.

    Many sinologists may have thought, “Not that, too!” when the debate about the controversial Xinjiang opinion piece by renowned experts Thomas Heberer and Helwig Schmidt-Glintzer erupted last week.

    The field has recently been going through a difficult phase. On the one hand, it is plagued by concerns about new talent, which can be blamed primarily on the political leadership in Beijing. Regardless of its actions against various democracy movements in Hong Kong since 2014, the persecution of ethnic minorities, threats against democratic Taiwan, territorial claims against neighbors, or the stifled economy due to “zero COVID,” negative reporting always decreases interest in China among new students.

    Instead of learning Chinese, young East Asian enthusiasts prefer to turn to Korea and Japan, which offer more attractive cultural exports in the form of K-pop and manga. The fact that China almost completely closed itself off to visitors during the three years of the pandemic was equally fatal.

    China expertise is more in demand than ever

    Yet, China expertise is in higher demand than ever in politics and the media, which is not surprising given the increasing economic and global political significance of the People’s Republic of China. Everyone involved in the discussion agrees that more China expertise is needed, although the consensus reaches its end when it comes to defining it.

    Sinology thus faces an unbalanced demand situation that requires difficult adjustments. Conflicting goals have to be pursued. On the one hand, attempts are being made to attract more attention to China in schools – not only in order to recruit young students, but also because knowledge of the “Global South” is generally poor in Germany. On the other hand, academic sinology should position itself more strongly for political consulting and media work, but not neglect its important basic research. In view of low staffing numbers, this is an extremely difficult mission.

    In addition to all this, there is the credibility problem of sinology in the eyes of its critics (often China sinologists themselves, who, however, exclude themselves when they speak of “German sinology”). It is precisely those who have been dealing with the country for the longest time, who have the best contacts and can therefore gather a wide range of information, who these critics accuse of having conflicts of interest. They claim to have made themselves susceptible to blackmail, to be fed honorary titles and positions, invitations and privileged field access, in order to then engage in scientific “whitewashing” of CP positions.

    In fact, individual representatives of this group (but by no means all of them) repeatedly stand out in the media with relativizing statements. Other social scientists insist that serious research on China should, wherever possible, rely on field research. Otherwise, it would depend solely on written sources, which are notoriously censored in China. They, too, are now often quickly placed in the corner of the “China apologists.”

    The vast majority of social science researchers on China reflect very carefully on which field approaches involve which compromises, where “red lines” are, where there are blind spots and how to compensate for them, or how China’s new laws on data security and against espionage affect their empirical work. All these topics are regularly discussed in panels at symposia and in special workshops, and are picked up in publications on research ethics.

    It is this kind of serious and objective discussion that needs to continue, even if Heberer and Schmidt-Glintzer’s Xinjiang travelogue seems to confirm the fears of critics regarding a pro-Beijing sinology. The reactions show that it does not represent the discipline as a whole. The swift objection that they reaped was important. But Sinology should be careful not to increasingly indulge in self-flagellation instead of constructively dealing with its challenges. Otherwise, it will fail to make the necessary adjustments to meet the challenges.

    Bjoern Alpermann was born in 1972. He studied Modern Chinese Studies, Economics and Political Science at the University of Cologne and Nankai University, Tianjin. After a junior professorship at the University of Wuerzburg, Alpermann took over the chair of Contemporary Chinese Studies in 2013. One of his main areas of work deals with minority politics of the PRC in Xinjiang and Tibet. He regularly travels to the PRC for research visits.

    Executive Moves

    Xuefeng Chen will hand over the post of global CEO at California-based e-mobility company Faraday Future to longtime manager Matthias Aydt. Chen will return to China at the end of the month to resume his previous role as China CEO.

    Is something changing in your organization? Let us know at heads@table.media!

    China.Table editorial office

    CHINA.TABLE EDITORIAL OFFICE

    Licenses:

      Sign up now and continue reading immediately

      No credit card details required. No automatic renewal.

      Sie haben bereits das Table.Briefing Abonnement?

      Anmelden und weiterlesen