London/Berlin CNN —Germany announced Thursday that it would reduce its dependence on China in “critical sectors” including medicine, lithium batteries used in electric cars and elements essential to chipmaking.
The government published its first ever “Strategy on China,” a 40-page document that highlights the tightrope Berlin must walk in managing its dependence on the world’s second-largest economy amid growing criticism of Beijing’s human rights record and attitude towards international law.
China is Germany’s most important trading partner, with imports and exports between the two nations reaching nearly €300 billion ($335 billion) in 2022, according to the government.
China is a crucial partner in tackling climate change, pandemics and sustainable development, the strategy paper added.
China is a key market for several major German companies, including Volkswagen (VLKAF) and BMW, and the government said it planned to hold talks with firms “particularly exposed to China” with a view to “identifying concentration risks.”
Persons:
Berlin CNN —, ”, Chancellor Olaf Scholz’s, ” Scholz, Olaf Scholz, Germany Heiko Becker
Organizations:
Berlin CNN, Siemens, Reuters, Volkswagen, BMW
Locations:
Berlin, China, ”, Beijing, Germany, overdependent, EU, Bavaria