As US tries to isolate China, German companies move closer

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German lawmakers and business leaders have made clear that their relationship with China is more nuanced. Read more at straitstimes.com.

two powerful engines of the German economy, Volkswagen and the chemical company BASF, are broadening their huge Chinese investments.

“Without the business in China, the necessary restructuring here would not be so possible,” Mr Brudermüller told reporters at his company’s annual earnings conference in February. “Name me just one investment in Europe where we could make money.” German lawmakers and business leaders have made clear that their relationship with China is more nuanced: open to vigorous trade, while trying to diversify into other Asian markets.

“Germany will not be able to simply relax its relations with China in the short term,” Ms Kamin said. “The dependencies are too great for that.” One area where Germany has long dominated ties with China is the automobile industry. German automakers, including BMW and Mercedes-Benz, sell roughly a third of all vehicles they produce in China – exceeding sales in all of Western Europe.

 

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