Germany to curb overdependence on China in critical sectors


New Delhi: Things are getting difficult day by day for China, the country with the world’s second largest economy. Countries around the world are turning away from him one after the other. In this series, Europe’s largest economy Germany has made a comprehensive strategy to reduce its dependence on China. This includes many critical sectors. Under this, dependence on China will be reduced in the case of medicine, lithium batteries used in electric cars and essential goods used in chip making. The German government has published a 40-page strategy in this regard. China is being criticized worldwide for its attitude towards human rights record and international laws. In such a situation, it has become a compulsion for western countries to reduce their dependence on China.

China is Germany’s largest trading partner. Bilateral trade between the two countries stood at $335 billion in 2022. But now the situation has changed. The German government has said in its document that China has changed. For these reasons, we also need to change our approach towards China. According to this, China is an important partner of Germany in climate change, epidemic and sustainable development, but it is more concerned about its own interests and is also defying international laws. Germany wants to continue trade and investment with China but wants to diversify its supply chain in critical sectors.

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German companies doing business in China

It has been said in the document that China is excessively dependent on China in terms of medical technology and medicines. Also, Germany is completely dependent on China in the matter of IT, semiconductor manufacturing equipment, metals and rare earths. It states that in critical sectors the European Union should not depend on non-EU countries that do not care about our fundamental values. According to this, strict provision will also be made for research and development projects with the government of China.

China is a big market for many German companies. These include Volkswagen (VLKAF) and BMW. The government says it will hold talks with these companies. Companies doing business in China have welcomed the strategy but have expressed some concerns. According to a CNN report, Jens Hildebrandt, executive director of the North China branch of the German Chamber of Commerce, said that most German companies doing business in China have taken measures to reduce risks. However, he said that the paper does not mention how we can strengthen our economy without reducing dependence on China.

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