Contemporary Transformations in the European Union–Germany–China Relations
| DOI | http://doi.org/10.1177/00208817221092839 |
| Published date | 01 July 2022 |
| Date | 01 July 2022 |
| Subject Matter | Research Articles |
https://doi.org/10.1177/00208817221092839
International Studies
59(3) 212 –233, 2022
© 2022 Jawaharlal Nehru University
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DOI: 10.1177/00208817221092839
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Research Article
Contemporary
Transformations in the
European Union–
Germany–China Relations
Preksha Shree Chhetri1
Abstract
This article analyses broadly the European Union’s (EU) growing geopolitical
ambitions in the context of its shifting stance on China. Within the EU, it focuses
on the Germany–China Comprehensive Strategic Partnership by noting the
current developments and changes in the Germany–China partnership. Here,
the discontinuity between the ‘old’ and ‘new’ obstacles in Germany–China
trade relations is identified through an analysis of four critical issues: Germany’s
Federation of German Industries (BDI) policy paper, Made in China 2025,
Germany’s Industrie 4.0 and Germany’s 5G conundrum. Through the above,
the article makes the argument that though there are considerable new strains
on Germany–China relations and EU–China relations, concrete transformations
affecting trade relations have not been observed. The article concludes by
noting that the achievement of the new-found geopolitical ambitions of the EU
would require a much more concentrated effort by all members rather than
mere posturing.
Keywords
Strategic partnership, geopolitics, bilateral trade, EU-China, Germany-China.
Introduction
This article analyses broadly the European Union (EU’s) growing geopolitical
ambitions in the context of its shifting stance on China. Within the EU, it focuses
on the Germany–China Comprehensive Strategic Partnership (CSP) by noting the
current developments and changes in Germany–China partnership. Here, the
discontinuity between the ‘old’ and ‘new’ obstacles in Germany–China trade
1 Institute of Chinese Studies, New Delhi, Delhi, India
Corresponding author:
Preksha Shree Chhetri, Institute of Chinese Studies, Delhi 110019, India.
E-mail: preksha.chhetri@gmail.com
Chhetri 213
relations is identified through an analysis of Chinese acquisitions in Germany,
Germany’s BDI (Bundesverband der Deutschen Industrie or the Federation of
German Industries) policy paper, Made in China 2025, Germany’s Industrie 4.0
and Germany’s 5G conundrum. Through the above, the article makes the argument
that though there are considerable new strains on Germany–China relations and
EU–China relations, concrete transformations affecting trade have not been
observed. The article concludes by noting that achievement of the new-found
geopolitical ambitions of the EU would require a much more concentrated effort
by all members of the EU rather than mere posturing.
Against the aforementioned background, the article is divided into five
sections: The first section discusses in detail EU’s growing geopolitical ambitions,
which are visible through two important trends—the European Commission (EC)
President’s ‘Geopolitical Commission’ and growing enthusiasm among scholars,
diplomats and political leaders in support of a united EU with a strategic role in
global affairs. The shift in EU’s approach towards geopolitics is sought to be
illustrated primarily through its shifting stance on China, and accordingly, the
second section focuses on EU’s transforming China policy—in terms of both
official language and scholarly perspectives. One of China’s most notable bilateral
partnership within the EU is with Germany in the form of the Germany–China
Strategic Partnership. As one of the six founding members of the EU and the
biggest contributor to the EU budget, Germany plays an important role in the EU
and is one of China’s biggest trading partners. Based on this, the third section
therefore, discusses the strong economic linkages between Germany and China,
which pose considerable obstacles to a tough EU policy on China. Germany’s
business community was one of the biggest beneficiaries of close ties with China
and hence was China’s strongest champion within the EU, but in the recent past,
they are increasingly finding it difficult to thrive in Chinese markets and are
worried about China’s ‘shopping spree’ in the EU and Germany in particular. The
primary reason for concerns among German businessmen is related to China’s
growing footprint in the high-technology market and acquisition of core industries
in the EU. The fourth section discusses these important concerns. Though EU’s
posturing in recent years on China has hardened, Germany is still cautious about
its approach towards China. In fact, despite visible strains, the EU and China have
recently concluded the long-awaited investment agreement called the EU–China
Comprehensive Agreement on Investment (CAI).1 Therefore, the final section
attempts to take stock of the current realities in the Germany–China partnership.
The article concludes with the observation that despite the shifting tenor of
discussion in Europe on China, no real transformations have taken place in the EU
and Germany’s China policy so far. Instead, the EU and Germany are shifting
focus towards self-strengthening and preparing cautiously to tackle the present
and future challenges without straining ties. The primary question that the article
attempts to answer is if Germany can rebalance its China policy, while securing
its strategic interests without straining its ties with Beijing.
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