German Chancellor Olaf Scholz with a delegation of senior business leaders met President Xi Jinping on 4 Nov. Germen Business leaders included the chief executive officers of Adidas AG, Deutsche Bank AG, Siemens AG, vaccine maker BioNTech SE, Volkswagen AG and many others. Despite objections from many in his Cabinet and ruling coalition, Scholz pushed through a controversial deal to allow Chinese state-owned shipping company Cosco to buy a minority 24.9% stake in one of Hamburg's port terminals.

Chancellor Olaf Scholz told President Jinping that he was seeking to "further develop" economic cooperation between the two countries.

The train journey from China to Europe take 17-22 days depending on which city.

China was Germany's biggest trading partner in 2021 for the sixth consecutive year, its biggest single source of imports and its No. 2 export destination after the United States. Germany Exports to China was US$123.67 Billion during 2021, according to the United Nations COMTRADE database on international trade.

The main products that China exported to Germany are Broadcasting Equipment ($12.6B), Computers ($11.2B), and Other Cloth Articles ($5.79B). During the last 25 years the exports of China to Germany have increased at an annualized rate of 10.6%, from $8.98B in 1995 to $112B in 2020.

As soon as Rashi Sunak became UK new PM he closed all the 30 Confucius Institutes in UK. Obviously he does not know the benefit of co-operation with China.   

Chinese President Xi Jinping said the German chancellor's visit to Beijing will "deepen practical cooperation" between the two countries as he met Olaf Scholz in Beijing on 4 Nov, Friday. 

"It is believed that the visit will enhance mutual understanding and mutual trust, deepen practical cooperation in various fields, and create sound plans for the development of China-Germany relations in the next stage," CCTV reported. 

Chancellor Olaf Scholz told President Jinping that he was seeking to "further develop" economic cooperation between the two countries, while acknowledging the leaders had "different perspectives".

"We also want to talk about how we can further develop our economic cooperation on other topics: climate change, food security, indebted countries," Scholz said to Xi, a German government source told an AFP reporter travelling with the chancellor.  

German Chancellor Olaf Scholz’s one-day visit to Beijing, leading a large business delegation, the first by a G-7 leader to China, has turned out to be an interesting meeting between Scholz and Chinese President Xi Jinping. The two leaders seem to have felt the need for the two countries to connect with each other even as they differed on certain key issues.

While Xi said that it is easy to destroy understanding between two countries and that it takes a long time to rebuild, Scholz on his part said that there are different views and that is why it becomes to have an exchange of views.

Both the leaders said in a diplomatic fashion that there are problems. Xi went on to say that there is need for two influential countries like China and Germany to work together for world development and peace. Scholz has told Xi that China should exert influence on Russia in ending the war in Ukraine. After crossing the preliminary hurdles as it were, the two sides talked business, which was the main agenda of Scholz’s visit.

There was criticism at home as the opposition Christian Democrat leader pointed out the Social Democrat chancellor was pursuing a policy doing business with China despite reservations from the immediate European neighbourhood because China is seen as an authoritarian political system that violates human rights. But it was clarified on Scholz’s side that he had consulted with France and the United States about the visit.

The United States and the United Kingdom want to maintain a hostile attitude toward China on ideological grounds though both America and Europe are hugely dependent on China for manufactured goods. And there is no realistic way that they can suddenly end trade relations protesting Beijing’s one-party communist rule. There is also the question of Taiwan. China and the West maintain their positions.

China has claimed Taiwan to be part of China as part of its ‘One China’ policy’, and the Western countries have insisted that no force should be used and Taiwan should join China voluntarily. But China in recent times has made it clear that it would use force if it becomes necessary to do so. US President Joe Biden in one of his off-the-cuff remarks said he would go to war with China to defend Taiwan, but the White House had clarified that the president’s remarks did not imply war.

In the 20th Congress of the Communist Party of China (CPC) last month, where Xi was given an unprecedented third term as the general secretary of the party, the Chinese leader had told his party colleagues that China is facing a hostile world and there is a need to defend China.

Xi aware of the adversarial attitude of the Americans, but he seems to be aware that not all of the European countries are with the US on this. It is in this context that Scholz’s visit assumes significance. Germany as a leading economy of Europe will not easily follow a collective decision on the part of the US or the European Union (EU).

There are many belligerent anti-China voices in the European Parliament, but the key decisions will be made by countries like Germany and France. And both these countries do not want to follow America as uncritically as does the United Kingdom. In many ways, the American attempt to isolate China may not be successful, at least in Europe. Germany is not inclined to fight a new cold war based on ideology. In the old cold war, Germany was divided between east and west. But now as a united country, it has much less stake in an ideological confrontation with China.