Olaf Scholz on important visit to China

(Patria) - German Chancellor Olaf Scholz arrived in China on Sunday for a visit focused on increasingly tense economic relations between the sides and differences over Russia's invasion of Ukraine, AP reported.

Scholz's first destination was the industrial hub of Chongqing, where he and his delegation of ministers and business leaders were to visit a company partly financed by Germany and other locations in this city, which is a manufacturing base for China's automotive and other industries.

Scholz is also expected to visit the financial center of Shanghai during his three-day visit, before traveling to the capital Beijing, where he will meet with Chinese leader Xi Jinping and Premier Li Qiang.

German companies such as BMW and Volkswagen rely heavily on the Chinese market, but Beijing's support for Russia is creating friction with the West.

Germany has benefited from Chinese demand for investments and manufactured goods, from cars to chemicals, but these ties have frayed due to competition from Chinese companies and stricter regulations. Political interference is also blamed for the sharp decline in foreign investment. German companies claim they face unfair market barriers in China, and the government has advocated for a policy of "de-risking" to reduce reliance on the Chinese market and suppliers.

Nevertheless, China remained Germany's main trading partner for the eighth consecutive year in 2023, with 254.1 billion euros in goods and services exchanged, slightly more than what Germany traded with the United States, but 15.5% less compared to the previous year. German exports to China amounted to 97.3 billion euros, according to the German Federal Statistical Office, although figures varied depending on exchange rate fluctuations and rounding of numbers.

Chinese state television CCTV showed Scholz descending from his plane in Chongqing and leaving in a motorcade, but did not broadcast any comments to the welcoming delegation. Before his arrival, Scholz posted on X that on Saturday he spoke with Ukrainian President Volodymyr Zelensky about "massive" Russian air strikes on civilian energy infrastructure and stated that Berlin would "stand unwaveringly on Ukraine's side."

China has refused to criticize Russian aggression. It has maintained trade relations with Russia and aligned its foreign policy with Moscow in opposition to the West. After visiting a hydrogen engine production plant run by German company Bosch, Scholz toured the city with young architects and was scheduled to go on a boat cruise along the famous Yangtze River, one of two powerful waterways that partially surround the city.

After visiting Shanghai on Monday, Scholz will fly to Beijing and meet with Xi on Tuesday at the Diaoyutai State Guesthouse before being received by Li with military honors at the Great Hall of the People, the seat of the ceremonial legislative body in the heart of China. Further visits and meetings will follow before he departs late Wednesday evening.

This is Scholz's second trip to China since becoming chancellor at the end of 2021. His previous visit was in November 2022 and was essentially a one-day trip due to strict COVID restrictions still in place at the time.

This is his first visit since the German government presented its China strategy last year, which drew criticism from Beijing. Premier Li and a delegation of senior officials visited Berlin in June.