Sino-German relations to benefit from deepening pragmatic cooperation

April 16, 2024

BEIJING – All eyes are on German Chancellor Olaf Scholz who is paying a three-day visit to China from Sunday. That Scholz is accompanied by Environment Minister Steffi Lemke, Agriculture Minister Cem Ozdemir, and Transport Minister Volker Wissing shows how important the visit is for both sides.

The historical trajectory of Sino-German relations shows pragmatic cooperation has served as the cornerstone of bilateral ties. Conversely, endeavors veering toward ideological confrontation have disrupted and undermined their partnership. Anchored by the tenets of economic globalization and interdependence, Sino-German relations have thrived, buoyed by a robust mutual strategic trust and open communication.

Economics and trade are the linchpin of Sino-German relations. Over the past half a century, Germany has emerged as one of China’s foremost trading partners in Europe, with bilateral trade accounting for one-third of the total China-European Union trade. And the fact that German investments in China constitute a third of total EU investments underscores the symbiotic nature of their economic interdependence.

The two countries’ automobile and energy sectors serve as exemplars of successful industrial collaboration, exemplified by CATL’s significant investments in Germany. Even amid escalating geopolitical tensions, German businesses continue to express confidence in the Chinese market and its economic potential, as evidenced by a 4.3 percent year-on-year increase in direct investments in 2023, which reached a record 11.9 billion euros ($12.9 billion), according to IW institute. Also, German investments in China accounted for 10.3 percent of its total foreign investments in 2023, the highest since 2014.

Besides,