New federal government: A fresh course for China policy is required!

New federal government: A fresh course for China policy is required!

The new federal government faces the challenge of revising and improving its China policy. Jürgen Matthes, head of the International Economic Policy, Financial and Real Estate Markets Cluster at the German Economic Institute, emphasizes that compared to the previous traffic light government, which laid a solid foundation with a good China strategy, there was no consistent follow-up. The new government's coalition agreement contains promising approaches, but falls short in crucial areas, as Matthes criticizes.

A central aspect of the new China strategy is that the traffic light coalition, consisting of the SPD, Greens and FDP, wants to shape relations with China not only as partnership, but also as competition-oriented and from the perspective of systemic rivalry. For the first time, the Taiwan issue is also being addressed in a German coalition agreement. The Federal Government plans to intensify cooperation with China on the basis of human rights and international law, with particular attention to be paid to human rights violations in Xinjiang.

Focus on human rights and foreign policy

The coalition calls for the restoration of the “one country, two systems” principle in Hong Kong and addresses China's aggressive foreign policy in the South China Sea. Regarding Taiwan, the Traffic Light Coalition advocates a peaceful solution to the status quo and supports Taiwan's inclusion in international organizations. These approaches are part of a comprehensive strategy that seeks a clear positioning vis-à-vis the USA in order to promote transatlantic coordination on China policy.

An important concern of the coalition agreement is to avoid Germany going it alone in dealing with China. A joint approach with the EU should be ensured, whereby the EU-China investment agreement CAI remains open and reciprocity is demanded. The future government also plans to strengthen the network of foreign chambers of commerce and examine takeovers of critical infrastructure by foreign investors for possible security threats.

Capacity building and European initiatives

Another goal is to expand Germany's Asia and China expertise. In this context, the EU's “Global Gateway” infrastructure initiative is highlighted as a direct competitor to the Chinese “Belt and Road Initiative”. Jörg Wuttke, President of the EU Chamber of Commerce in China, sees the new coalition agreement as a reflection of public opinion about China. David McAllister, CDU European politician, also emphasizes the importance of a strong German position within the EU's new China strategy.

Overall, it is clear that the challenges in foreign policy towards China are great. The new federal government has the potential to improve the existing strategy while focusing on concerns about human rights and geopolitical stability. It remains to be seen how effectively the federal government can implement the goals outlined in the coalition agreement and whether it will actually bring about a sound change of course. For a successful China policy, commitment at both the European and transatlantic levels are crucial.