Germany’s Finance Minister, Lars Klingbeil, arrived in Beijing on March 12, 2024, marking the first visit by a representative from the new coalition government to China. This visit comes as Berlin faces increasing pressure to address a widening trade gap and growing supply chain challenges. The trip follows the cancellation of Foreign Minister Johann Wadephul‘s visit last month, which was scrapped after China declined to hold most meetings on his agenda.
During his visit, Klingbeil aims to engage in discussions centered on critical trade issues, particularly focusing on Chinese restrictions concerning rare earth materials. A source from the German Finance Ministry indicated that the government has coordinated its positions with officials from the European Union who oversee the bloc’s trade policy. “Access to critical raw materials and the reduction of Chinese overcapacity in sectors such as steel and electric mobility are of great importance for the economy and jobs in Germany,” Klingbeil stated in Berlin prior to his departure.
The coalition government, led by the conservative faction, is under significant domestic pressure to demonstrate effective engagement with Beijing. Concerns have intensified due to the impact of former U.S. President Donald Trump‘s trade policies, which have weakened German exports and increased vulnerabilities in supply chains. This has led to heightened worries regarding access to vital resources like rare earth metals and automotive chips.
Key Meetings and Future Discussions
Klingbeil is scheduled to meet with He Lifeng, Vice Premier of China, as part of the German-Chinese financial dialogue, a platform established in 2015. Accompanying him are Joachim Nagel, President of the Bundesbank, along with a small delegation from various German banks and insurance firms.
The relationship between Europe and China is increasingly complex. “Europe and China are in a very ambiguous relationship. On the one hand, we need them; on the other hand, we are concerned by security issues,” remarked Denis Depoux, global managing director at Roland Berger.
Following his discussions in Beijing, Klingbeil plans to travel to Shanghai on March 14, 2024, where he will meet with leaders from German mid-sized companies. His itinerary will then take him to Singapore for further engagements.
This visit highlights Germany’s ongoing efforts to navigate its economic relationship with China, particularly as pressures mount both domestically and internationally.
