China’s Xi hails new chapter with Germany, urges friendly policy towards Beijing

By Mei Mei Chu and Liz Lee

BEIJING, Oct 30 (Reuters) – Chinese President Xi Jinping on Friday urged Germany to pursue a “rational, pragmatic and friendly” policy towards China, using talks with President Frank-Walter Steinmeier to push for closer ties despite growing trade frictions between Beijing and Europe.

Xi welcomed what he called a new chapter in relations between the two countries and expressed support for an “all-dimensional strategic partnership” based on equality, mutual benefit and strategic stability.

“This new paradigm sends a positive signal to the world: we favour openness over closure, and cooperation over confrontation,” Xi told Steinmeier.

The German president’s five-day visit is set against the backdrop of brewing trade tensions between the European Union and China. Brussels has warned that it will use every possible means to remedy its widening trade deficit with China.

Germany, along with France, has also proposed that the EU enact a new rapid-action measure against countries that harm it, with China likely in focus.

On Thursday, Steinmeier warned that China’s drive for greater economic self-sufficiency should not come at the expense of other markets. At the same time, German Chancellor Friedrich Merz has been touring Singapore, Japan and South Korea to deepen trade and security ties with like-minded partners amid concerns over US tariffs and China’s state-backed industrial expansion.

CHARM OFFENSIVE

The visit is part of a broader Chinese diplomatic push to shore up ties with European countries as Beijing faces mounting scrutiny over its trade practices.

A day before Steinmeier arrived to visit Volkswagen’s plant in the eastern city of Hefei, the German automaker’s China unit said it had obtained a permit to conduct Level 3 autonomous-driving road tests in the city, a key step toward its 2027 target for L3 readiness.

Beijing also hosted Swiss President Guy Parmelin to sign an upgraded free trade accord and welcomed Iceland’s Foreign Minister Thorgerdur Katrin Gunnarsdottir with a new flight connection linking Beijing with Reykjavik.

But analysts said the diplomatic efforts may do little to reverse increasingly skeptical views of China in Europe.

“The real question is if this would be enough to counter the concern in the EU and its member states with China’s overall mercantilist approach to economic ties,” said Steve Tsang, director of the SOAS China Institute.

The German debate on China has become more critical, particularly on economic issues, said Eva Seiwert, senior analyst at the Mercator Institute for China Studies.

“Calls for a tougher China policy are now coming not only from politicians and security experts, but increasingly from the German industry itself, which has traditionally pushed for close economic ties with China,” she said.

(Additional reporting by Qiaoyi Li and Andrew Silver; Editing by Ros Russell)