Chinese Lure

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Germany and China are each other’s partner. But they are also sharp competitors. The economy is the normal, the policy is increasingly on the brake. From Berlin, Sabine Kinkartz.

Of course, was the theme of Huawei at the China Day in 2019. The Chinese chamber of Commerce in Germany had invited to the conference to Berlin. As to Huawei Executive David Wang. The Chinese Telecom giant is a leader in 5G mobile and wireless technology and to build its Hardware the ultra-fast network in the world.

Especially in the USA, but fear that the Chinese government could force Huawei, back doors in its products. Beijing could give third-party networks, or even completely turn off, warn intelligence officials. Huawei denies it vehemently. “We have no secret technology in our devices,” said David Wang, “we can’t control anything, or steal.”

A lot of need for discussion: A Podium at the China Day 2019

On demand, somewhat sheepish

His company had never been asked to collect data for the government. In retrospect, this may be true. But what is law – bound grob said that any Chinese person, in principle, to cooperate in safety relevant issues with the government is since 2017 applicable cyber security? The ask on the China Day, a Chinese DW-Reporter.

“For the future, Huawei has these statutory obligations,” Wang give. In the law, but also that “the legitimate rights of private persons and institutions would be protected”, he tries to put things in perspective. “So it must be in compliance with the law, you are not allowed to collect the data against the law.”

Who makes the laws?

But what does this mean in China? The government of the people’s Republic has fundamentally different notions of individual Rights than the West. “We have different systems,” says the Chinese Ambassador to Germany Wu Ken. “China has chosen its own way and serves us well.” But this path also serves as a business partners?

China is grown in many areas of the economy to the largest competitors. “We are today eye-to-eye,” says Andreas Nicolin, in the Federal Ministry of economy for foreign trade promotion in Asia. Even if the German economy is still “slightly advanced”.

The mistrust grows

On the China Day Nicolin of mutual respect and understanding, speaks of good health conditions, are necessary, and the fact that both countries are dependent on economic cooperation. Nicolin asks, however: “As an equal in our partnership?”

A question, the politics and the economy different answer. The Federal government is emphasized today more than ever, the risks with a view to the future technological cooperation. In the economy, however, the view on the tremendous opportunities that China offers continue to be dominated. Long ago, facts are created, one speaks of a “new normality” in relations.

A new?

In fact, Germany is by far China’s largest trading partner. Since 2016, the reverse is also true. The volume of trade amounted last year to around 200 billion euros. German companies had invested in China more than 33 billion US dollars in more than 10,000 projects according to Ambassador Wu. China is in Germany with more than thirteen billion dollars in around 2000 projects.

The two countries could successfully work together, says Ambassador Wu. Nevertheless, he had to read in German Newspapers that China will be perceived as a threat. It is not the time, to maintain political prejudices. “We are in the biggest Transformation of the century, no one can do this alone,” argued Wu. “If we regard our cooperation as a zero-sum game, then that will limit our future.”

“A big cake bake”

China will open more for investors. “We will expand access to the market and the best environment for business in China.” It will be in the future a still better right to for investment. “We want to bake a big cake, so that all may have their share,” says the Ambassador inviting.

The sounds of the German economy. “We are a Partner and a competitor in a, and that is a good thing,” says Volker Treier from the German chambers of industry and Commerce (DIHK). “We believe together that you can reach in the competition standing Win-Win situations.” It was important to take chances. “We should be less complaining about the deficits, but rather to look where we can make things together”, so Treier, which represents clearly a “new norm”.

How far should the state interfere?

At the Federation of German industry (BDI), it is because careful. Stefan Mair, Deputy Director General, relies on the political support. The current EU strategy paper he finds very important. It is important that the EU holds itself out as a unit. In China, a competitor to be a grown-up, “has left us in the Parts of the artificial intelligence significantly”. Therefore, Mair finds it also true that Chinese investment in the EU to be more controlled and limited. “Safety is a value worth protecting, the investment restrictions legitimized.”

On the other hand, Mair, will be extended to the area of national security and public order of the policy. “We view with concern.” It is not only critical infrastructure, but also key technologies. It is a “an industrial policy for the threat in Germany through the back door,” said Mair, who thinks little of, when the state intervenes in the economy.

A Tightrope Walk

The economy is too naive, if you want to perceive the opportunities in China, restrictions rejects and normality throbs? Yet the lure predominate. China is already now so much more in the digital opportunities, and gushed at the China Day, Verena Kantel from Bayer AG. “We expect there to be innovation, we would not get if we don’t go there.” There is a lot of start-UPS in biotechnology, an enormous amount of risk would flow to capital.

The pharmaceutical giant has been in China nine production sites and, in cooperation with universities and clinical research studies. Scantlings speaks of “an appropriate framework, the data security” and says that in China, the strict European regulations and requirements are not an issue. Competition for Bayer in China is currently not an issue. But for how long? In the pharmaceutical area, China two waxes digits, says Scantling. Also, Bayer will change the times soon.