Realigning economic policy with China: CDU politician Klöckner wants to reduce dependency

Realigning economic policy with China: CDU politician Klöckner wants to reduce dependency

According to a report by www.rnd.de,

CDU politician Julia Klöckner is in favor of realigning Germany's economic policy with China. She emphasizes that Germany and China are not only economic partners, but also competitors and rivals with different political systems. Klöckner calls for better protection of the European infrastructure, uniform investment controls and a common exclusion list for investments that are not possible. She warns that austerity and budget consolidation in Europe must not lead to a sell-off of critical infrastructure to China's advantage. She also argues for an incompatibility between EU membership and membership in the Chinese “Silk Road”.

The federal government is currently preparing a new German China strategy to reduce dependence on China and broaden supply routes. Economics Minister Robert Habeck has already made it clear that dependence on China should be reduced. This is in connection with the acquisition of a 24.9 percent stake in a terminal in the port of Hamburg by the Chinese company Cosco.

As a financial expert, I see that Klöckner's call for a realignment of economic policy with China and reducing dependence on China could have significant effects on the market and the financial industry. New investment controls and exclusion lists could lead to changed investment strategies and associated risks for companies. Broadening supply routes and reducing dependence on China could help spread supply chain risks and strengthen economic resilience. The planned new German China strategy could also lead to a realignment of investments and trade relations, which could impact financial markets.