Chancellor Merkel asks German companies to invest in Asian countries other than China

Berlin: – German Chancellor Angela Merkel, jolted the European aspirations, of China saying that the German companies should invest in any of the Asian countries other than China. This is the second instance of the German Chancellor reprimanding China over trade issues. Chancellor Merkel warned ‘Chinese government should remember that henceforth if China does not grant access, to its markets, to the European companies, the Chinese companies will not get an entry into the European markets.’

Against the background of the Coronavirus pandemic, the discontent against China is intensifying in Europe. The handling of the Coronavirus pandemic by the Chinese regime and the decisions taken regarding the Uyghurs and Hongkong have been the main cause of European resentment. It has been observed that China has dismissed all the appeals made and warnings issued by the European Union regarding bilateral relations. Against this background, the head of State of Germany, a leading European country, making statements to deliver a jolt to China, becomes significant.

Recently, ‘Asia-Pacific Conference of German Business’ was held in Germany. Chancellor Angela Merkel and Commerce Minister Peter Altmaier attended the conference. Both the German leaders appealed to the gathering to invest in countries other than China while thinking of the Asian market. Chancellor Merkel gave indications that the German companies should prepare to exit from China ‘A third of the German exports to Asia are to east Asia and 50% of this is to China. Henceforth, the German companies should invest in other countries and focus on other markets in the Asia-Pacific. The German government will carry out the necessary reforms to create a proper framework for the purpose.’

Commerce Minister Peter Altmaier also appealed that the German companies should think beyond China while increasing the investment in the Asian markets. Only a few days ago, Germany declared its policy for the Indo-Pacific and even the policy suggests to think of newer countries for investment.

Currently, Presidentship of the European Union is with Germany and a German leader is occupying the post of Chief of the European Commission. Therefore, the German stand in the policies and decisions of the European Union will prove decisive. In the past, Germany had taken the initiative to open the European markets for China and strengthening relations with China. Therefore, Chancellor Merkel and other German leaders making open statements expressing resentment against China has become significant. This could have a significant impact on Europe-China relations and deliver a major jolt to the Chinese aspirations and ambitions regarding Europe.