As Xi Jinping consolidates his power in China for a third term, Europe is becoming aware of the risks of its dependence on Beijing. In Berlin, Olaf Scholz is widely criticized because he is about to authorize the Chinese group Cosco to take stock in the port of Hamburg.
In Germany, the war in Ukraine raises the question of dependence on the great authoritarian powers, especially Russia and China. The Cosco group was supposed to acquire 35% of the shares in one of the terminals of the port of Hamburg, but this operation has attracted very strong criticism.
Within the government, the Greens and the FDP liberals took a stand against this decision, believing it endangered a critical infrastructure. Six ministries also disapproved of the operation. Despite the criticism, Olaf Scholz decided to keep the transaction with a lower stake.
>> Read about it: Germany allows limited Chinese participation in the Port of Hamburg
But this “compromise” is still denounced in Germany. The press speaks of a “catastrophe that strengthens German dependence on China”. “Olaf Scholz continues Angela Merkel’s fatal policy”, write some newspapers and even the very liberal daily Frankfurter Allgemeine Zeitung declares that “security is more important than commerce”.
A squeeze on world trade
China wants to increase its grip on world trade. [Ju Peng – AFP]
With this operation, the German Chancellor wants to defend the economic activity of the port of Hamburg, the city of which he was mayor. He is one of those who fear that the Chinese group will look elsewhere, given that it is already present in a dozen ports in Europe. Furthermore, Olaf Scholz has to travel to China in early November and would not have been able to go there if this transaction had not been authorized by his government.
For China, this strategy allows the country, and therefore the Communist Party, to increase its grip on world trade. Ownership of port terminal quotas gives the possibility to decide which ships are allowed to dock, when the cargo can be loaded or unloaded or even where it is stored.
The influence in terms of logistics is far from negligible, especially since Beijing, particularly through its maritime transport giant Cosco, a state-owned company linked to the political apparatus, has significantly expanded its port network after the rise. to the power of Xi Jinping. China currently has some or all of one hundred port terminals around the planet.
Many experts warn against this takeover strategy. By extending its control over the supply chains, Beijing also increases their international dependence: enough to defuse potential economic sanctions in a context of growing tensions. The authorities in particular would put in place levers to avoid the fate of Russia after the invasion of Ukraine.
Olaf Scholz against public opinion
Olaf Scholz wants to defend the economic activity of the Port of Hamburg despite criticism. [Emmanuele Contini / NurPhoto – AFP]
In Germany, public opinion is sensitive to the country’s dependence on China, but Chancellor Olaf Scholz seems to go it alone and ignore these concerns. The country has been on the Chinese market for a long time and the chancellors and chancellors have always traveled to China with a plethora of bosses.
All major German companies make a significant part of their turnover in China. Volkswagen, for example, sells nearly 40% of its new cars there. This situation has also recently made the BASF boss say that it was necessary to “stop hitting China”. But this is not the opinion of all companies.
On the occasion of Olaf Scholz’s trip to China, some big names turned away. The daily Frankfurter Allgemeine Zeitung cites Mercedes, Bosch, Continental, SAP or Thyssen Krupp. These companies do not want to associate their image with that of the German Chancellor who came to congratulate Xi Jinping. Furthermore, Beijing’s zero Covid policy has also upset the economic activities of companies, making German economic circles doubt the interest of the Chinese market which is proving to be more risky and less stable than before.
The power of China over Europe
For the Chinese government, the German Chancellor’s visit is significant because he will be the first Western leader to visit Xi Jinping since his unprecedented consolidation of power at the just-concluded Party Congress. In any case, a sign of the balance of power and of Berlin’s dependence on Beijing at a time when the European Union is trying to reinforce its tone against a China defined as a system rival.
Olaf Scholz’s state visit highlights the obstacles Europe faces when it comes to defining a coherent strategy to counter the rise of China. French President Emmanuel Macron had proposed a joint trip, just to show a semblance of unity, but the proposal was rejected by the German Chancellor.
For Xi Jinping, these differences within the European Union allow him to achieve his goal of weakening, even defusing the political uprising that has emerged in recent years in Europe.
Radio subject: Blandine Milcent and Michael Peuker
Web adaptation: aps
