Why Olaf Scholz is set to visit China despite 'de-risking' calls

Despite calls to "de-risk" from China, German Chancellor Olaf Scholz will embark on a three-day visit to China with the aim of strengthening bilateral relations, expanding practical cooperation and resolving global hotspot issues, Chinese observers noted, as the leader is expected to arrive on Sunday.

"In recent years, the China-Germany relationship has seen steady progress. The two sides have witnessed frequent high-level exchanges and deepened practical cooperation in various fields, especially in economy and trade," Liu Zuokui, deputy director of the Institute of European Studies at the Chinese Academy of Social Sciences (CASS), told CGTN.

"As a 'bellwether' of China-European Union (EU) cooperation, Scholz's visit sets a good example and will continuously inject momentum into the steady development of China-EU relations," Liu added, noting that the two sides are also expected to talk about peaceful approaches to resolve global hotspot issues, such as the Russia-Ukraine conflict and the Israel-Hamas conflict.

At the invitation of Chinese Premier Li Qiang, Scholz will pay an official visit to China from April 14 to 16, Chinese Foreign Ministry spokesperson Mao Ning announced on Friday.

Chinese President Xi Jinping will meet with Scholz, and Premier Li will hold talks with him and exchange views on bilateral relations and issues of common concern, Mao said at a regular press conference.

China and Germany have benefited from each other's development, and both countries have guided China-EU relations to develop in a steady and sustained manner and injected more stability into the world, Mao said.

As this year marks the 10th anniversary of the establishment of the all-round strategic partnership between China and Germany, China is ready to work with Germany to deepen understanding, trust and cooperation to advance bilateral ties and make greater contributions to world peace and prosperity, the spokesperson added.

German newspaper Handelsblatt reported on April 4 that Scholz's visit will be accompanied by Environment Minister Steffi Lemke, Agriculture Minister Cem Ozdemir and Transport Minister Volker Wissing.

Reuters reported on the same day that Germany's top corporate brass, including Roland Busch, president and chief executive officer of Siemens AG, Mercedes-Benz CEO Ola Kaellenius and Germany's leading science and technology group Merck's CEO Belen Garijo, will join Scholz when he visits China. Busch also serves as chair and president of the Asia-Pacific Committee of German Business. 

"Currently, Germany is facing serious internal and external challenges. Scholz's visit to China holds significant political and economic significance," Zhou Hong, deputy chair of the Academic Division for International Studies at the CASS, told CGTN on Friday.

"Scholz's visit aims to strike a balance in (Germany's) China policy. Companies, especially the big ones, are actually against 'de-risking' or 'decoupling' from China and believe China is one of the most reliable trade partners and economic partners, although they are also worried about the negative impact of geopolitical tensions and the U.S.' demonization of China," Zhou said.

"Germany's GDP growth rate is relatively low now, combined with high inflation and other factors, such as the effect of the Russia-Ukraine conflict and the increase in oil prices. German companies are optimistic about China's economic prospects, which is important to Germany," the expert added.

China remained Germany's most important trading partner for the eighth year in a row in 2023, the Federal Statistical Office (Destatis) of Germany pointed out on February 14.

China continued to be "by far the most important supplier country for Germany, as it has been since 2015," it noted.

Telecommunications equipment, processing machines, and other electronic devices, as well as cars, were Germany's most imported goods from China in terms of value, according to the figures.

Germany continues to grow its economic ties with China. Direct investments made in the country rose by over 4 percent to a record 11.9 billion euros (about $12.8 billion), according to calculations published on February 14 by the German Economic Institute.

The three-day visit is Scholz's second since taking office. He was last in China in November 2022, in a year that marked the 50th anniversary of Germany-China diplomatic relations. Scholz is the first European leader to visit China after the 20th National Congress of the Communist Party of China.

"China is an important trading partner for Germany and for Europe as a whole. Germany firmly supports trade liberalization, supports economic globalization, and opposes decoupling. Germany stands ready for closer trade and economic cooperation with China and supports more mutual investment by Chinese and German businesses," Scholz said during his last visit.