Germany's President Frank-Walter Steinmeier has urged China not to let its pursuit of economic self-sufficiency create one-sided dependence in other markets. He made the point in an address at Peking University in Beijing on Thursday, 29 October, during a five-day visit to China that runs until Saturday. He is due to meet Chinese President Xi Jinping on Friday.

According to the text of his speech, Steinmeier said it was understandable that China wants to protect its economy against external shocks and negative influences, but pressed the point that its greater independence must not lead to dependence and vulnerability for others. He was objecting to the trade imbalance between China and Europe, which the European Union has called unsustainable.

Market access and raw materials at issue

Steinmeier said European companies have found themselves with no or little access to the Chinese market, while European markets face large amounts of state-subsidised Chinese imports as well as Beijing's controls and limits on its raw materials exports. The EU warned last month that it would use every possible means to remedy its widening trade deficit with China, and Germany, along with France, has proposed that the EU adopt a new rapid-action measure against countries that harm it, with China likely in focus.

No bloc confrontation, says Steinmeier

Despite the criticism, Steinmeier said Europe was determined to keep its industrial base and that he was confident Brussels and Beijing would be able to find solutions through dialogue. "We do not want a new bloc confrontation. That would not only be dangerous for international security, but would also be an economic loss for everyone," he said. His visit comes as European governments weigh how to respond to Chinese export controls and subsidised competition without breaking off the trade relationship.

Sources: Reuters via Duke FM, Europe Says