Germany’s Economy Minister Katherina Reiche is set to travel to China in May for a series of closed-door discussions aimed at addressing both cooperation and growing
tensions between the two economic heavyweights.
Speaking on Wednesday, Reiche emphasized that China continues to be a vital market for German industry, underscoring the deep commercial ties that bind the two nations. However, her remarks also reflected increasing concern within Berlin over the strategic risks embedded in that relationship.
“China remains a large and important market for us,” she said, while cautioning that critical supplies—ranging from raw materials to industrial components—are increasingly being leveraged for geopolitical purposes.
Her visit comes at a time when Germany is reassessing its broader economic dependence on China, a relationship that has evolved over decades from opportunity-driven engagement to a more complex mix of partnership and rivalry.
A relationship under strain
Germany and China share one of the most significant trade relationships in the world. China has been Germany’s largest trading partner for several years, with German automakers, machinery producers, and chemical companies heavily invested in the Chinese market.
Yet this interdependence has also exposed vulnerabilities. German policymakers have grown wary of supply chain dependencies, especially after recent global disruptions and rising geopolitical tensions. Concerns over market access, state subsidies, and pricing practices have further complicated the relationship.
Reiche signaled that these issues will be central to her discussions in Beijing. She pointed specifically to “unfair trade practices and dumping prices” as areas requiring frank dialogue.
Strategic recalibration
Berlin’s approach is increasingly defined by a dual strategy: maintaining economic engagement while reducing strategic risks. This aligns with a broader European trend often described as “de-risking” rather than full decoupling.
Reiche is expected to highlight Germany’s role as a reliable and stable partner, while also pressing for fair competition and transparency. Her visit follows earlier trips to China by Chancellor Friedrich Merz, along with Germany’s finance and foreign ministers—suggesting a coordinated effort at the highest levels of government to recalibrate ties.
Looking ahead
The outcome of Reiche’s visit may shape the next phase of German-Chinese economic relations. While neither side is expected to dramatically alter course, the talks could help set the tone for how Europe’s largest economy navigates its relationship with an increasingly assertive China.
For Germany, the challenge remains clear: how to preserve the benefits of one of its most important economic partnerships without compromising economic security or political autonomy. Photo by Ahazan, Wikimedia commons.