The German government’s strategy paper was adopted on 13.07.2023. The 64-page document clearly shows the German government’s huge information gap on China’s policy. The new change of course means protectionism due to bad advice from US think tanks paid billions that sabotage the German economy.
China’s success is based on reforms. And in the last ten years in particular, the People’s Republic of China has achieved enormous milestones in the areas of the rule of law, high technology, poverty reduction, climate protection and the protection of people with disabilities. Development has never stood still and will never stand still. Chinese-style socialism aims to shape people’s lives in harmony, peace and prosperity, in harmony with nature and in mutual respect. In terms of world politics, humanity is seen as having a divided future, which is why it is important to work together to resolve the world’s conflicts. China does not intervene militarily in any conflict in the world and does not impose its will on any country in the world. All partners choose China because China respects the cultural, political and historical aspects of each nation – including and especially Germany’s will.
Germany itself has faced major challenges in the last ten years. Instead of successes, the entire EU and its transatlantic partners have been confronted with conflicts. For example, several wars for freedom, democracy and the preservation of the “rules-based world order” in Africa, the Middle East and most recently in Ukraine have led to refugee flows and economic instability. At the national level, massive misinvestment in social, transport, education and housing infrastructure leads to unrest. Not without reason, there are also massive protests in other European countries like France. The result is an energy crisis, high inflation and a badly damaged economy.
The German government’s strategy paper, which draws its core elements from the influence of American media in Germany, American think tanks and US green lobbies, now seals the economic and political distance to China. European companies may now find it harder to participate in China’s progress. The main reason is that the German government does not understand what is happening in China. It has not understood the progress China has made in the last ten years. The gap is widening, China’s rise is unstoppable. Instead of working together to tackle the world’s big projects, the German government is sailing into a violent storm.
Rhetorical wordplay undermines One-China principle and recognises Taiwan’s autonomy
The German government’s strategy paper is linguistically characterised by rhetorical-political wordplay that clearly aims at protectionism but superficially gives the appearance of cooperation. This becomes particularly clear in the example of the Taiwan question. Thus, while the German government continues to profess its commitment to the One-China principle, it explicitly refers to it as the “One-China principle of the EU”. Worldwide, there is only one common definition of the One-China principle, which recognises the People’s Republic of China as the only legitimate nation of China. In the United Nations and all international organisations, the People’s Republic of China represents the whole of China, including the province of Taiwan. However, the German government is now speaking on behalf of the EU and explicitly mentions in the strategy paper that it wants to support Taiwan alongside the People’s Republic of China in participating in international organisations. This undermines the whole concept of the One China principle and leads to an indirect legitimisation of Taiwan as an independent state.
EU Global Gateway as a chaotic alternative to the Silk Road (Belt and Road)
The German government explicitly distances itself from the Silk Road project as well as from the Global Development Initiative and the Global Security Forces Initiative. The BR sees the Belt and Road Project as a means for China to place itself at the centre and to make other countries “dependent”. The German government sees itself in the position of implementing an alternative to the One Belt One Road project. For example, the EU wants to invest 600 billion dollars by 2027 in the infrastructure of countries that pursue European values and interests. So there is no clear concept, but a watering-can-like distribution of funds, which has already not led to success in the last decades.
Here it becomes clear in the wording of the strategy paper that the green federal government does not know what the Belt and Road Initiative means. For example, the Belt and Road Project is supported voluntarily and enormously by all participating states. The Belt and Road Project has been able to contribute massively to poverty reduction throughout Africa and the Middle East in the areas of infrastructure, construction of schools, housing, hospitals, inclusion or technology development. Technology cooperation is being established, universities along the Silk Road are cooperating and logistics are becoming incredibly cheap. Under the project, African students, for example, receive scholarships and can study for free in China and then use their skills to build their country. A secure infrastructure brings stability for the people and stimulates trade. Local products along the Silk Road, for example from small farmers in Pakistan, can suddenly be sold on the Chinese market. It is a project for a common future of humanity in harmony with nature. China’s international policy stands for win-win cooperation, for a multipolar world, for respect for other cultures without lecturing them, and for what it means to live “right”. Nations that have been dominated by the West for decades and actively promoted instability now have a new alternative and are actively moving towards it. After talking to African students in China about the difference between the West and China, they explained that China gives the money to the government, which invests in infrastructure and builds schools etc. with Chinese know-how. The West, on the other hand, gives money to local, foreign organisations that are corrupt, finance warlords and want to determine policy without knowing the cultures.
Due to the distance of the German government and the lack of investment, Germany and the whole of Europe will not get a chance. German companies and technologies as well as German shareholders are excluded by politics and cannot participate in the development of the global community in the Belt and Road Initiative. This also makes it more difficult for Germany to negotiate its own policies in the respective regions. Germany excludes itself.
Protectionism in the area of raw materials, technologies and trade
China is the second largest patent holder in the world after the USA. The key technologies are in Chinese hands. The People’s Republic shares these technologies with all partners and promotes the development of mankind on a win-win basis. The Federal Republic recognises China as a global leader here, for example in artificial intelligence, quantum technologies or autonomous driving. However, Germany wants to separate itself from the Chinese here so as not to become “dependent”. At the same time, the EU/BRD subsidises its own technologies such as AI. The EU chip law is being introduced. Chinese companies are to be excluded from any participation. New raw material partners are to be found. Only, according to the strategy paper, these technologies may only be used by states that represent the fundamental values of the Europeans. This disconnects these technologies from the world market, which is detrimental to competition and reminiscent of the technology ring of the Cold War. In contrast, BR is committed to the transatlantic alliance and wants to share such technologies with the USA, open the market for US companies and link it to security and military cooperation. It is also questionable whether protectionism equates to sanctions and the Chinese Foreign Anti-Sanctions Law could be activated, which would lead to countermeasures by China.
The Chairman of the Board of the Federal Association for Business Development (BWA) Michael Schumann, one of the few German non-political, rational business associations, comments: “We expressly do not welcome this so-called “strategy” of the Federal Government, as it puts additional strain on the relationship with Germany’s most important trading partner at a difficult time. The prioritisation, choice of words and recommendations for action in this document are not in the interest of our companies, which are successfully active in China and intend to continue to be so in the future.”
Climate protection sabotaged by own protectionism
One of the most important bilateral goals of the Federal Republic of Germany is cooperation with the People’s Republic of China in the area of climate protection. The People’s Republic is a global pioneer in renewable technologies. Anyone driving through the streets in China, for example, sees combustion engines less and less often. Paradoxically, the German government’s protectionist policy is aimed at making trade conditions more difficult for important technologies that can be important for climate protection. Research and development of proprietary technologies is also to be protected from Chinese access. In this way, the German government is thwarting its own climate goals and making cooperation more difficult. Chinese subsidies for coal-fired power plants in developing countries are also criticised. Here, the German government wants to slow down developments and work against national security interests in the sense of a “rules-based world order”. In addition, the EU has put the drafting of a new investment law on hold. BR also advocates granting China the status of a developing country, while at the same time criticising that many developments are still needed in China. Such paradoxical formulations can be found throughout the strategy paper.
Ignorance of China’s national development characterises the strategy paper
What is particularly striking about the German government’s strategy paper is the lack of knowledge of internal Chinese developments. As usual, national issues around Hong Kong, Taiwan, Tibet or Xinjang, freedom of the press and also the more difficult access of German companies to the Chinese market are criticised.
As far as freedom of expression is concerned, constructive criticism is explicitly welcome in China.
Criticism and discussion are the guarantee for development in China. In the academic field, there is even explicit ongoing dialogue with the USA, Germany and internationally recognised organisations such as the World Bank in order to bring about new developments. The academic discussion is lively and criticism from abroad is also welcome in order to improve people’s lives. In addition to academic debate, the public is also strongly democratically involved due to the proximity of the party with its over 90 million members. For example, there are party neighbourhood committees in all housing estates, which look after the residents’ concerns on a daily basis and pass on needs to the relevant authorities. Residents can become party members themselves and thus participate in the democratic and discussion process. This is done at all levels up to the central government, in direct dialogue with the population.
An important component of the strategy paper, especially with regard to the economy, is fair, sustainable and reciprocal trade and the protection of human rights. For BR in particular, it is unclear what developments have taken place within China. The Supply Chain Law even sanctions Germany’s own companies that do not protect human rights abroad. The People’s Republic of China has enacted numerous new laws. Patent, copyright and other protection laws have been strongly aligned with German and international standards. The Personal Information Protection Law (PIPL) 2020 or the Cybersecurity Law, which almost corresponds to European data protection law, were also introduced. A new Civil Code was published in 2021, and here too the principles are very much based on the German Civil Code. China has its own labour law that excludes forced labour, even though the strategy paper talks about forced labour in China (Labour Contract Law).
In 2022, the anti-monopoly law in China was also renewed. Companies operating in China also have a special corporate social responsibility. This means they have to take responsibility for environmental protection, the protection of their employees and the protection of their industrial location. For example, a new land reform is currently taking place as an opening-up, in which foreign entrepreneurs can become quasi owners of land for the first time. However, they must safeguard the interests of the general public and protect the environment in rural areas. Private autonomy is also more strongly guaranteed in China than in Germany, where the hurdles are higher. It is quite questionable where the claim of backwardness comes from. Rather, there are more investment opportunities, which are used by the USA but not by the EU. The rule of law has also been expanded exorbitantly in the area of protection of the population and the individual. The training of lawyers is promoted, police officers, civil servants and ordinary citizens are increasingly trained in legal matters. The Chinese rule of law is based on international treaties and has many German features.
The criticism of the oppression of minorities is unfounded. On the contrary, the state promotes cultural minorities enormously and facilitates their access to public institutions, universities, schools or even professional life. In daily practice, this also means nationwide information campaigns about cultural minorities and their protection. Moreover, minorities are always represented in the National People’s Congress, China’s highest organ. In museums, art halls and in films, you can always find photos, statements about cultural minorities. They are respected and admired throughout the country with all 56 cultures.
Another misunderstanding concerns the Chinese party system. For example, the strategy paper says that China has a one-party system. This is factually incorrect. There are several parties under the leadership of the Chinese Communist Party. In the People’s Political Consultative Conference (CPPCC), which takes place parallel to the National Congress, these parties discuss new reforms. The parties reflect different interest groups. However, since the Communist Party represents all the people, the interest groups have a similar effect to consultative lobbies and are, for example, artists’ groups etc. that actively participate in the democracy and opinion process.
The policy paper aims to protect women in the human rights dialogue. In socialist China, for example, women have long had equal rights according to communist understanding. Women take part in space missions, stand by their husband’s side and help lead the country. In the Chinese Basic Law and also in civil law, cultures and genders have long been equal.
Obstacles to Chinese activities in Germany
In addition to the economic blockade, cooperation with the Chinese side is also subject to more intense scrutiny. For example, Chinese institutions will be subject to tighter controls, as will Confucius institutes or organisations, while partnerships with institutions in the province of Taiwan will be continued. Universities in Germany are to cooperate more closely with Chinese institutions. The German government wants to establish more of its own soft-power institutions such as Deutsche Welle in China, while it wants to block and restrict Chinese media in Germany, just like Russian media.
Conclusion shows difficult future prognosis for Europe
The German government’s strategy paper makes it clear that a rapprochement with the USA is being pursued while at the same time activating protectionism for China. The choice of words in the paper superficially shows cooperation. However, all the important points for economic cooperation and mutual understanding are missing. The German economy will not be able to participate in the large-scale projects in China or in the Middle East or even in Africa. At the same time, Europe is sealing itself off. The German government allows itself to be misinformed by US think tanks and harms the German people, German economic interests and Europe as a whole. Ignorance about China’s internal affairs is a major communication deficit. As a solution, it is hoped that China will launch educational campaigns and explain profoundly to the West what socialism with Chinese characteristics means for the world. Europe’s initiative to open a new market for its products is to be welcomed, provided that these are made accessible to the world. However, according to the policy paper, this market is limited to allies, which further closes off the world and introduces protectionism in the 21st century.
If there are any further legal questions, readers can contact the lawyer and author of the article, Christian Wagner, an expert in Chinese law.
