{"id":17152,"date":"2026-10-28T12:26:46","date_gmt":"2026-10-28T09:26:46","guid":{"rendered":""},"modified":"2026-10-28T12:26:46","modified_gmt":"2026-10-28T09:26:46","slug":"steinmeier-seeks-to-de-escalate-german-chinese-tensions-on-visit","status":"publish","type":"post","link":"https:\/\/harici.com.tr\/en\/steinmeier-seeks-to-de-escalate-german-chinese-tensions-on-visit\/","title":{"rendered":"Steinmeier seeks to de-escalate German-Chinese tensions on visit"},"content":{"rendered":"

German President Frank-Walter Steinmeier is seeking to prevent further escalation in tensions during his latest official visit to China.<\/p>\n

China remains exceptionally important for key sectors of the German economy. The Asian giant is the second most critical foreign location for German companies.<\/p>\n

As reported<\/a><\/span> by German Foreign Policy, investments by these companies in China total over 110 billion euros. By comparison, German investment volumes are higher only in the US and Luxembourg, with investments in Luxembourg largely driven by tax advantages.<\/p>\n

German companies also continue to invest in China. In the first half of 2026, they carried out investments of around 5.6 billion euros, surpassing even the 4.3 billion euros invested in the US.<\/p>\n

In addition, automotive groups, among others, are increasingly conducting research and development activities in the People’s Republic of China.<\/p>\n

According to a recent assessment by an expert from the Cologne Institute for Economic Research (IW), some companies are using this fast-developing country as a “fitness centre”.<\/p>\n

At the same time, however, China’s importance as a sales market is declining sharply: German exports to China fell from 107 billion euros in 2022 to just 81 billion euros in 2025.<\/p>\n

Above all, China’s exports to Europe and particularly to Germany are surging, threatening to erode the market share of the flagship sectors of German industry on their domestic market, especially automotive, mechanical engineering, and the chemical industry.<\/p>\n

EU prepares moves against China<\/strong><\/p>\n

The EU is responding with defensive measures, but this remains a sensitive issue.<\/p>\n

Should China retaliate, it could cause severe damage, particularly to German industry, given its substantial presence in the country.<\/p>\n

In October 2024, Brussels imposed high tariffs on electric car imports. As Chinese manufacturers subsequently began exporting hybrid models to Europe on a large scale, debate quickly emerged over introducing high tariffs on these vehicles as well.<\/p>\n

Meanwhile, measures targeting machinery and chemical imports are also being prepared, as European Commission President Ursula von der Leyen announced at the latest EU summit held in Brussels in mid-October.<\/p>\n

The EU is additionally working on a package known as the “second-strike instrument”. German Chancellor Friedrich Merz and French President Emmanuel Macron recently called for the deployment of this mechanism in a joint letter to the Commission.<\/p>\n

The objective of this tool is to enable robust measures in situations of intense economic power struggles, including the partial or even total exclusion of third-country companies from the EU single market within just a few days.<\/p>\n

Under the proposal, the European Commission would be able to decide on such measures on its own initiative. In that scenario, member states insisting on the adoption of the measures would reportedly be less easily identifiable, allowing them to hope to avoid Chinese retaliation.<\/p>\n

Hybrid vehicle compromise<\/strong><\/p>\n

According to German Foreign Policy, doubts about whether the EU could survive an open economic war against China rest on solid ground.<\/p>\n

In mid-June, the Financial Times reported that experts from think tanks and academia had simulated escalating economic clashes between the two sides in a tabletop exercise.<\/p>\n

In that simulation, Brussels failed to bring Beijing to its knees; on the contrary, it would probably have lost an open economic war.<\/p>\n

Against this backdrop, the EU agreed to settle the dispute over Chinese hybrid car imports through negotiations.<\/p>\n

A few days before the mid-October EU summit, EU Trade Commissioner Maro\u0161 \u0160ef\u010dovi\u010d managed to outline such a resolution during talks in Beijing with Commerce Minister Wang Wentao.<\/p>\n

Under the agreement, the volume of hybrid cars exported from China to the EU, which stood at around 302,000 units in 2025, will be capped from December at an annual 350,000 units; more precisely, 350,000 units plus 6% per year.<\/p>\n

This arrangement is envisaged to remain in effect for four years, granting EU carmakers some breathing space to catch up with their Chinese rivals.<\/p>\n

Similar arrangements are being discussed in mechanical engineering and the chemical industry, as well as potentially in pharmaceuticals.<\/p>\n

China counter-moves: Export controls<\/strong><\/p>\n

While the EU pursues this track and prepares its economic “second-strike instrument”, the People’s Republic of China is taking steps to secure leverage in current economic power struggles.<\/p>\n

These measures are directed primarily at a potential escalation of the economic war with the US, which is currently more or less frozen, but in a worst-case scenario they could also be deployed against the EU.<\/p>\n

Specifically, Beijing is preparing new export controls that go beyond the restrictions on rare earth elements with which China succeeded in blunting an unprecedented US tariff and sanctions offensive.<\/p>\n

As reported early last week, the People’s Republic of China plans to subject exports of roughly 40 technologies, spanning artificial intelligence (AI), biotechnology, and photovoltaics, to strict licensing conditions, or even prohibit them outright.<\/p>\n

The stated rationale is that the country merely wishes to take steps to “safeguard national security”, in an overt mirror of the primary justification invoked by the US for a wide array of embargo measures.<\/p>\n

With critical technologies subject to restricted export or barred entirely, relocating the production of certain goods such as photovoltaic cells away from China to foreign locations will become harder, a shift that could also affect European firms.<\/p>\n

Steinmeier visits China: Can he defuse tensions?<\/strong><\/p>\n

Against this background, German President Frank-Walter Steinmeier arrived in China on Monday for his latest official visit.<\/p>\n

On the first day of his trip, Steinmeier visited the Volkswagen Group facility in the metropolis of Hefei.<\/p>\n

Volkswagen operates a research centre there employing around 3,000 engineers, designed to keep pace with the rapid development of electric mobility in the People’s Republic of China.<\/p>\n

Innovations developed in Hefei are transferred at times to facilities in Germany, helping prevent them from falling further behind internationally.<\/p>\n

Hefei has transformed into a high-tech hub on the back of heavy investment in emerging sectors such as artificial intelligence, semiconductors, and new energy vehicles.<\/p>\n

VW plans to supply Central Asian and particularly South-East Asian markets from its Chinese facilities to preserve competitiveness across these regions.<\/p>\n

Marking the Federal President’s trip, the Office of the Federal President stated that the goal was not “decoupling from China”, but rather sustaining “close and resilient economic relations”.<\/p>\n

According to reports, Steinmeier coordinated not only with Federal Chancellor Friedrich Merz, who is currently visiting Japan, but also with EU Trade Commissioner Maro\u0161 \u0160ef\u010dovi\u010d, who is pursuing robust trade policy alignment with the People’s Republic of China in line with German industrial interests.<\/p>\n

Steinmeier is eager to support this effort and is accompanied notably by Peter Leibinger, president of the Federation of German Industries (BDI).<\/p>\n

The president will then travel to Beijing to hold talks with top leaders, including his Chinese counterpart Xi Jinping and Premier Li Qiang, before concluding his visit.<\/p>\n

His office noted that the visit seeks to “address Germany’s multifaceted and complex relations with China and the challenges confronting them”, while his time in Anhui will highlight “China at the turn of the century around 1900 and the significance of this era in the history of German-Chinese relations”.<\/p>\n

According to the South China Morning Post, the selection of Anhui underscores<\/a><\/span> Berlin’s emphasis on dialogue despite deteriorating bilateral ties amid rising trade tensions, driven by German concerns that fierce Chinese competition could erode Germany’s manufacturing core.<\/p>\n

German leader’s packed China itinerary<\/strong><\/p>\n

Before heading to Beijing, Steinmeier will also visit the historic village of Hongcun and Mount Huangshan, sites that the German presidency noted bring together “nature, architecture, and philosophy”.<\/p>\n

In the capital, Steinmeier will tour the Institute of Atmospheric Physics under the Chinese Academy of Sciences to evaluate climate cooperation, followed by an address at Peking University. Xi is subsequently expected to receive him with full military honours.<\/p>\n

Visiting leaders’ regional engagements extend well beyond Anhui, with China’s financial capital, Shanghai, remaining one of the most sought-after stops.<\/p>\n

In January alone, the city hosted South Korean President Lee Jae Myung and British Prime Minister Keir Starmer, while a visit in August by King Abdullah II of Jordan further cemented Shanghai’s standing as a gateway to Chinese technology and consumer markets.<\/p>\n

Just south of Shanghai, Hangzhou has emerged as a similarly vital diplomatic destination. Once renowned primarily for the classical scenery of West Lake, the capital of Zhejiang province has evolved into an innovation hub drawing foreign heads of state with itineraries centred on robotics, e-commerce, and advanced manufacturing.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

German President Frank-Walter Steinmeier is seeking to prevent further escalation in tensions during his latest official visit to China. China remains exceptionally important for key sectors of the German economy. The Asian giant is the second most critical foreign location for German companies. As reported by German Foreign Policy, investments by these companies in China […]<\/p>\n","protected":false},"author":1,"featured_media":17153,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[175],"tags":[529,2311,610,5907,22789,13204,2320,543,503,4134,1831,8084,6788,22790,2360,5962,2011,821,2709,19890,786],"class_list":["post-17152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-diplomacy","tag-china","tag-emmanuel-macron","tag-eu","tag-export-controls","tag-federation-of-german-industries","tag-frank-walter-steinmeier","tag-friedrich-merz","tag-germany","tag-headline","tag-hybrid-vehicles","tag-li-qiang","tag-maros-sefcovic","tag-peter-leibinger","tag-second-strike-instrument","tag-tariffs","tag-trade-tensions","tag-ursula-von-der-leyen","tag-us","tag-volkswagen","tag-wang-wentao","tag-xi-jinping"],"yoast_head":"\nSteinmeier seeks to de-escalate German-Chinese tensions on visit - 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