Ich bin ein Beijinger
Xi Jinping is standing his ground against the EU.
On Tuesday, German Chancellor Olaf Scholz met Xi in Beijing after visiting Chongqing and Shanghai earlier this week.
ICYDK: Scholz’s visit comes at a tense moment.
- The EU is pushing back against China’s alleged anti-competitive trade practices and industrial overcapacity, launching investigations into Chinese exports of new-energy vehicles (NEVs) and wind turbines.
- Likewise, Beijing’s continued closeness with Moscow has caused many EU governments to view China as a security threat.
Xi addressed those security concerns (Xinhua):
- “China and Germany do not have clashing fundamental interests…and pose no security threat to each other.”
He also rejected EU complaints about overcapacity:
- “China's export of electric vehicles, lithium batteries and photovoltaic products has…eased global inflationary pressure [and] made important contribution[s] to the global response to climate change and the green and low-carbon transition.”
- “[China and Germany must] stay vigilant against the rise of protectionism.”
Scholz didn't sound convinced, saying (Reuters):
- "Unilateral economic policy decisions in China are creating major structural difficulties for companies in Germany and Europe.”
Scholz also asked Xi to “exert pressure on Russia” to pull its troops out of Ukraine.
- Xi said only that China “supports all efforts” to resolve the crisis peacefully (Xinhua).
Get smart: Xi’s vocal defense of Chinese exports and vague language on Russia suggest he has no intention of easing Europe’s fundamental anxieties.
- This will only strengthen the case in the EU for de-risking and rebalancing trade and political ties with Beijing.