German chancellor's China visit raises worries over European protectionism
German Chancellor Angela Merkel will visit China from Sunday to co-preside over the intergovernmental dialogue between China and Germany, as the two countries seek to strengthen cooperation and communication on trade and culture, experts said.
In a weekly video message on Saturday, Merkel said that she will raise concerns over a new Chinese law on nongovernmental organizations and over steel production during her trip to China, according to the Associated Press.
This will be Merkel's ninth visit to China since she took office, Hong Lei, foreign ministry spokesperson said in a news briefing on June 6. More than 20 ministers and vice ministers from both sides and 20 German company executives will be present at the dialogue.
The intergovernmental consultations, established in 2011, is a dialogue mechanism aimed at coordinating and enhancing cooperation between the two countries, Hong said.
Merkel will meet Chinese President Xi Jinping, Premier Li Keqiang and Chairman of the Standing Committee of the National People's Congress Zhang Dejiang, according to Hong Lei.
Merkel's schedule also includes a visit to Shenyang, capital city of Northeast China's Liaoning Province. Shenyang and Beijing signed a cooperation agreement for the construction of an industrial production site with German multinational engineering and electronics conglomerate Siemens in 2015, according to the Xinhua News Agency.
Germany is China's biggest trade partner in Europe, while China is Germany's largest trading partner outside the EU.
Steel worries
Merkel said she will raise the issue of China's massive steel production "because it is currently a difficult situation for all EU member states."
"Steel production relates to an recent debate on China to be recognized as a market economy by the European Commission," Zhou Hong, an expert from the Institute of European Studies at the Chinese Academy of Social Sciences, told the Global Times on Saturday.
Zhou said that the visit is a chance to explain to Germany and EU China's efforts on cutting overcapacity in steel industry, which has been blamed for allegedly "dumping" cheap steel on the global market.
Merkel will discuss the reciprocity in the area of company investments and the risk of bubbles from high debt levels during her trip in China, according to Reuters, including overcapacity, especially in the steel sector.
"Merkel's visit comes in the midst of concerns over Chinese takeovers in Germany and Europe and heated discussions on bringing more restrictions on the expansion of Chinese enterprises," Feng Zhongping, vice president of the China Institutes of Contemporary International Relations, told the Global Times on Saturday.
Some German politicians have called for tougher restrictions on foreign investment following a 4.6 billion euro ($5.2 billion) bid by China's biggest maker of home appliances Midea for German robotics firm Kuka, according to Bloomberg.
Feng said that there is a rise of protectionism in Germany as well as in Europe as a whole since more Chinese enterprises have expanded their markets in Europe. Chinese investors have sought to acquire German companies at a rate of roughly one a week and they have offered to buy 24 companies since the start of 2016.
"China is accelerating economic restructuring and upgrading with a shift from low-end products to high-end industry. This makes developed countries regard China as a competitor," Jia Genliang a professor at the School of Economics at the Renmin University of China, told the Global Times.
Jia said that the world is undergoing an economic downtown, which contributes to the trend of protectionism.
German Vice Chancellor Sigmar Gabriel was quoted by Bloomberg as saying that Europe needs rules to fend off "unfair competition" from countries with state-run economies such as China, and that this was not protectionism.
A senior Merkel adviser was quoted by Reuters as saying that German companies "want a level playing field, the same conditions for both sides," suggesting a more open market in China for foreign firms is needed.
"China may have problems in some fields of the open market, including services industry and investment, but it is now trying to increase market access for foreign firms and carry out market reforms," said Feng.
It is unfair for Europe to shift frustrations about the expansion in the Chinese market to accusations against China, said Feng, adding that protectionism would affect bilateral economic and trade relations between China and Germany as well as China and Europe.
Merkel also said that she will call for the work of political foundations and other groups "not to be too negatively influenced" by a new law on nongovernmental organizations, the AP reported.
The legislation taking effect in 2017 puts foreign NGOs under direct government supervision and requires them to state where their money comes from and how it is spent.
