Europe
Berlin and Brussels feel the pinch from Beijing
Discussions are heating up within Germany and the EU regarding future economic relations with China.
The background to this issue is the offer from a new Trump administration to apply more favorable tariffs on exports to the US for countries that reduce economic cooperation with China.
Washington is attempting to win over German automobile companies with special cooperation in the development of autonomous driving technology. The US goal is to push Chinese automobile companies out of the European market.
However, German automobile manufacturers have already begun close cooperation with Chinese companies. For example, BMW announced last week that it would develop its new models not only with Chinese tech giants like Huawei and Alibaba but also with the support of the artificial intelligence startup DeepSeek.
Around thirty German companies have written a letter to the prospective CDU-SPD federal government stating that they are becoming increasingly dependent on Chinese companies, which are becoming more and more “innovation leaders,” and therefore want closer cooperation with China.
US forces ‘friends’ to choose
Discussions about future economic relations with China have begun because the Trump administration has clearly stated its intention to make better offers regarding US tariffs for countries that reduce their business with China.
The US government has not yet officially announced this, but President Donald Trump recently told Fox News Spanish that Latin American countries should decide for themselves whether to establish investment relations with the US or China, adding, “They should do that.”
China strongly opposes this demand and emphasizes that it will react decisively if one or more countries accept this demand against its interests.
A statement from the Chinese Ministry of Commerce early last week said that Beijing “will strongly oppose any party that makes an agreement that harms China’s interests” and will take countermeasures if necessary.
No unity on China within the EU
There are contradictory stances among EU members. For example, Spain is determined to develop its economic relations with China; to this end, Prime Minister Pedro Sánchez met with Chinese President Xi Jinping in Beijing on April 11.
Italy, whose most important trading partner after Germany is the US, insists on closer cooperation with the US. Prime Minister Giorgia Meloni visited Trump in Washington earlier this month and then hosted US Vice President JD Vance in Rome.
The EU, at least on paper, is trying to show its “independence.” A European Commission spokesperson argued last Tuesday that negotiations were ongoing to discuss bilateral trade relations with Washington, but that the shaping of relations with China could in no way be dictated.
Claiming that these were two different issues that should be kept separate, the spokesperson said that the goal of “derisking” in relations with the People’s Republic of China would continue, but that complete “decoupling” was not targeted.
The Commission spokesperson added that there were no red lines in the negotiations other than the “security and prosperity” of EU citizens.
Stabilizing relations with China
Independently of this, Brussels has initiated practical efforts to carefully stabilize relations with China.
Just days after the US announced its latest tariffs, Commission President Ursula von der Leyen, who had previously taken a pro-US and often explicitly anti-China stance, said in a phone call with Chinese Premier Li Qiang that the EU and China, the world’s two largest markets, should continue their efforts towards a trade system based on “free, fair, and equal conditions” against US tariffs.
Leyen added that the two economic giants should make greater efforts for a fair trade system.
A spokesperson for European Council President António Costa soon announced that an EU-China summit would likely take place in Beijing in the second half of July.
China, for its part, announced plans to lift sanctions imposed on five Members of the European Parliament (MEPs) in March 2021. Those affected by the sanctions include former Green MEP Reinhard Bütikofer and CDU MEP Michael Gahler.
It is stated that with this step, China expects concessions from the EU, particularly regarding Chinese companies’ investments in Europe; however, the EU refuses to return to previous negotiations for a comprehensive investment agreement.
CDU-SPD government in Berlin will ‘derisk’
In Germany, too, discussions are intensifying regarding the path to be followed concerning China.
The new coalition agreement between the CDU/CSU and SPD states that relations with the US maintain “extraordinary importance,” while also arguing that in terms of trade policy, the “transatlantic economic area” offers the best conditions for success in global competition.
Regarding US tariffs, the future government coalition states that it wants to “prevent trade conflict” and that a “free trade agreement” should be signed with the US in the medium term.
Regarding relations with the People’s Republic of China, the coalition agreement states that the next federal government will revise the current China strategy according to the principle of “risk reduction.” Accordingly, economic cooperation with China will be further reduced.
US offers German industry a ‘deal you can’t refuse’
On the other hand, according to reports in the German media, the Trump administration is offering German industry cooperation with US companies in the development of autonomous driving.
It is stated that the US wants to increase the competitiveness of its own technology companies like Google and Nvidia in the global market for autonomous driving.
The goal is to capture China’s market share in cooperation with German automobile manufacturers.
However, it is doubtful whether the plan will work. BMW announced last week that it intends to use the artificial intelligence programs of the Chinese company DeepSeek for several new models to be launched in China this year.
It stated that cooperation with Huawei and Alibaba had been expanded in recent weeks to optimize the hardware of the new vehicles. Volkswagen also reported taking similar steps.
German companies’ letter to government: Cooperation is inevitable
In the letter sent to the future federal government by dozens of German companies, including large companies as well as medium-sized ones, it is emphasized that Chinese companies are increasingly becoming “innovation leaders,” and it is pointed out that close cooperation with them is crucial for competing in innovations.
According to the letter obtained by faz, the “risk reduction” policy, which continues unchanged in Berlin, constitutes an obstacle to such cooperation and therefore harms German industry.
Calling for the People’s Republic of China to be seen as a “partner” rather than a “competitor,” the companies also call for more “China expertise,” warning that the “distorted” image of China prevalent in Germany constitutes “an obstacle for German companies.”
One-third of these companies’ turnover and an even larger portion of their profits come from China. Therefore, if they were forced to abandon their business in China, they would face a problem that is almost impossible to solve.
For example, Oliver Oehms, President of the German Chamber of Commerce in Beijing, criticizes the coalition agreement. In the opinion of the Chamber’s members, the Chinese market is vital for the global competitiveness of German companies.
Oehms demands, “Therefore, we should receive more support from the new federal government, which combines ‘risk reduction’ with a goal-oriented China policy.”
Indeed, Jürgen Matthes, head of the international economic policy department at the German Economic Institute in Cologne, points out that when it comes to “risk reduction,” not much has changed for German companies.
Europe
Mutual accusations of blackmail and assault overshadow AfD state election congress in Germany
The Alternative for Germany (AfD) state congress in North Rhine-Westphalia ended in chaos on Sunday.
During the selection of the 22nd position on the candidate list for next year’s state elections, delegates aligned with the far-right Bundestag member Matthias Helferich proposed more than 100 candidates. This move was reportedly designed to block the vote in the town of Marl, halting progress on the list to force negotiations for subsequent positions.
Earlier in the candidate selection process, supporters of State Co-Chairman and lead candidate Martin Vincentz, who represents the moderate wing of the party, had prevailed. The defeat of Zacharias Schalley—a figure close to Helferich—by a candidate from the Vincentz camp triggered significant discontent within the radical wing of the party. Representing approximately 40% of the delegates, Helferich’s supporters reportedly demanded strong representation in the next state parliamentary group.
During the congress, Helferich claimed that Bundestag member Knuth Meyer-Soltau, a member of the Vincentz camp, physically assaulted him. Speaking to the newspaper WELT on Sunday, the 37-year-old Helferich described the incident:
“Meyer-Soltau was passing by the row where I was sitting. He was arguing with another member. When he turned back, while I was sitting in my chair, he shouldered me and shouted, ‘Shut up, you idiot!'”
Helferich added: “I do not know if he wanted to knock me out of my chair. However, because he insulted me in anger, I cannot rule out the possibility that this was a deliberate attack.”
An email exchange sent to the federal executive board and state management revealed that Helferich filed a criminal complaint on Monday.
“Meyer-Soltau hit my chair and my body, either intentionally or through negligence”
In the complaint filed by Helferich, he stated: “Meyer-Soltau hit my chair and my upper body hard, either intentionally or through negligence; I was only able to avoid falling by holding onto the edge of the table.” The complaint also named two witnesses.
In his letter to the party leadership, Helferich wrote: “Since numerous similar incidents of electoral law significance occurred at the state election congress, I believe the duty to maintain party order falls to the Federal Executive Board.”
Meyer-Soltau, a 61-year-old lawyer like Helferich, denied the allegations. Speaking to WELT on Sunday, the lawmaker said: “I reject the accusation being made.”
Meyer-Soltau suggested that Helferich viewed him as a powerful opponent because he had previously acted as the negotiator for the state executive board in the party’s expulsion proceedings against Helferich before the Federal Arbitration Court. The party court recently rejected the expulsion request.
“It is clear that this situation has not had a positive impact on our relationship,” Meyer-Soltau said. “Mr. Helferich, having suffered a heavy defeat at the nomination meeting, is clearly seeking satisfaction through other means. I will hand the matter over to my lawyer and take legal action.”
A letter sent to Helferich by Meyer-Soltau’s lawyer, which was leaked to the press, stated: “My client has never insulted you or physically assaulted you.” The letter demanded that Helferich cease repeating the claim and sign a cease-and-desist declaration carrying a contractual penalty.
Additionally, Meyer-Soltau’s lawyer filed a criminal complaint with the Dortmund Prosecutor’s Office for defamation. The petition submitted to the prosecutor’s office stated: “The accusation of physical assault is highly defamatory, calculated to permanently damage my client’s public reputation, and socially discredit him.”
Allegations of blackmail made against delegates at the congress
Allegations of threats against delegates also emerged at the state congress in Marl. Helferich ran against Klaus Esser, a close associate of Vincentz, for the 13th position on the candidate list. Esser, who needed just one vote to be elected in the first round, only secured a majority in the second round of voting.
Following the announcement of the results, a delegate took the stage to claim that before the second round, a state executive board member from the Vincentz camp went to the rows of the Wuppertal district association and threatened that a state lawmaker from Wuppertal would be expelled from the parliamentary group if the necessary votes for Esser were not delivered. The delegate announced that a complaint would be filed regarding the matter.
A spokesperson for AfD Co-Leader Alice Weidel told the media outlet “The Pioneer”: “Weidel does not approve of this situation. Such things must not happen.”
Other allegations of threats were voiced through the hall microphones during the congress. One delegate claimed that a candidate had been threatened by a district councilor and a district chairman.
“He was told that if he did not withdraw his candidacy, he would have no future in this party. There are numerous witnesses who can confirm this,” the delegate asserted.
Another delegate reported that a young woman was pressured by a district chairman who asked whether she would “lend herself to this game and submit to blackmail,” warning her that the situation would have “consequences for her in the district association.”
Marco Vogt, the Deputy Chairman of the Düsseldorf AfD and an ally of Helferich, said during his candidacy speech that young members who participated in the list disruptions had been threatened by their employers present in the hall.
Another candidate, a municipal councilor from Würselen, stated that a district administrator from the Aachen region had issued an implicit threat, telling him he would make many enemies in his own association if he did not withdraw his candidacy.
Candidate Leon Biallawons directly targeted lawmaker Knuth Meyer-Soltau, saying: “I tell you clearly, dear Knuth, I will not allow myself to be threatened by you. Because, dear Knuth, it is not you but the grassroots who will decide who succeeds in this party, and the grassroots will assert their will in the long term.”
Meyer-Soltau declined to comment on these allegations, stating: “I do not wish to comment on such baseless claims.”
Other tactics were used to slow down the proceedings at Sunday’s congress. One delegate requested a 30-minute recess because “there is an ice cream truck outside,” though this request was rejected. The convention manager, Julian Flak, was heard calling out to a delegate: “Take that garden furniture outside immediately!”
A message shared on Saturday in a chat group close to Vincentz stated that the “self-proclaimed patriotic group” had threatened to completely block the congress. It was alleged that the core group led by Helferich planned to deliberately disrupt the flow of the congress to force their opponents to the negotiating table.
Weidel accused of undermining efforts in chat group
On Sunday, in the same chat group, it was written that the sabotage action was being coordinated by Federal Deputy Chairman Sven Tritschler and Helferich. The message claimed that Tritschler had discussed the move with “his boss Alice Merkel”—a reference to AfD leader Alice Weidel. “This is a clear operation of attrition. We will not bow to an Alice Merkel,” the message read.
By Monday night, the ballot for the 22nd list position contained the names of 81 candidates. Some individuals who announced their candidacies withdrew before speaking. The results are expected to be announced next weekend.
The North Rhine-Westphalia AfD association has allocated a total of four weekends for candidate selection meetings. With the party projected by public opinion polls to win between 30 and 40 seats in the state parliament, competition for the top spots on the list remains intense.
An article titled “AfD-NRW Grassroots Resist Cartel Partyization,” published Monday on a Telegram channel close to Helferich, described the events as a “heroic act” and an “impressive reaction of an alert, idealistic grassroots.” The mass candidacy process was characterized as a “combination of Carl Schmitt’s partisan theory with a democratic liberation move unprecedented in AfD history.”
The article argued that if lead candidate Vincentz wants to translate polling success into a strong election result, he must unify the party by granting Helferich’s supporters viable, electable positions on the list.
Europe
EIB to unveil 15 billion euro tech initiative to scale European startups
The European Investment Bank (EIB) will announce a €15 billion initiative today, in collaboration with EU capitals and private investors, aimed at supporting the growth of European technology companies.
For decades, startups on the continent have struggled to raise the large-scale funding rounds necessary to scale on this side of the Atlantic, frequently turning to US investors or relocating abroad as they expand.
“We are catching up. Now we need to accelerate,” EIB President Nadia Calviño said.
Under the existing European Tech Champions Initiative, the EIB had already pooled resources with six EU governments to establish funds that invest in high-growth companies across the EU.
Calviño described the initiative as “very successful,” noting that it has supported 12 European “unicorn” companies valued at over $1 billion, including the German artificial intelligence translation firm DeepL.
The bank is now expanding the program with a new phase nearly four times the size of the original.
Twenty-five EU governments, alongside private investors such as Santander and Danske Bank, are expected to participate in the program.
This initial €15 billion aims to mobilize up to €80 billion in total investment. Calviño stated that this estimate is based on the multiplier effects achieved under previous programs.
As part of these efforts, the EIB also aims to attract European pension funds, which manage immense pools of capital but have historically allocated fewer resources to technology investments compared to their US counterparts.
In addition to the new funding, Calviño noted that the EIB will create a platform providing a single point of access for existing European scale-up initiatives, including the European Commission’s Scaleup Europe Fund, France’s Tibi initiative, and Germany’s Win initiative.
Europe
Germany to purchase US Tomahawk missiles to build own long-range strike capability
Germany will purchase Tomahawk cruise missiles from the United States and deploy them on German territory, Chancellor Friedrich Merz announced on Thursday.
The move marks a shift away from planned US deployments and toward Germany establishing its own long-range strike capability.
Merz told lawmakers that he finalized the agreement with the US government during the NATO summit in Ankara, adding that the talks held on Tuesday and Wednesday had exceeded his expectations.
“While we close a critical strategic gap in our defense, we are also working to develop our own European systems and deploy them in Europe,” the Chancellor said.
According to German government sources, Washington committed in a letter of intent signed on Tuesday to approve Germany’s acquisition of Tomahawk missiles and their land-based Typhon launchers in August.
The number of missiles and launchers Germany plans to purchase was not disclosed because the information is classified.
The planned acquisition appears aligned with US President Donald Trump’s pressure on European allies to cover their own security costs, such as by purchasing US weapons.
The fate of the Tomahawk procurement had become uncertain after Trump announced in May that he would reduce the US military presence in Germany.
That development was seen as a cancellation of a plan made under the previous administration to deploy a US battalion equipped with long-range Tomahawk missiles to Germany.
That original plan was designed as a temporary solution to serve as a strong deterrent against Russia while Europeans developed their own versions of such weapons.
Germany produces its own cruise missile, the Taurus, but its range of approximately 311 miles is three to five times shorter than that of the Tomahawk missiles.
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