Preparing for war is meant to prevent war – an idea with deep roots in ancient Chinese strategic thought that may have just found an echo in Berlin.
The EU’s proposed “kill switch”, intended to swiftly cut off market access for third countries including China, was put forward by France and Germany and unanimously endorsed by member states.
But ideally it would never have to be used, German Chancellor Friedrich Merz said on Wednesday, stressing that Berlin was seeking “a new balance in trade” with Beijing rather than a trade war.
“We are having instruments, we are opening the toolbox, we are showing the toolbox, but we do not want to make use of our toolbox,” Merz told an audience at the Berlin Global Dialogue annual summit.
Europe, he stressed, was not following the playbook of US President Donald Trump. While Washington chose to close off its market to Chinese products, Europe chose to engage in dialogue, Merz said.
“This is not the beginning of a trade war with China. We are looking for peaceful solutions, but the level for that is fair trade,” he stated.
European Commission President Ursula von der Leyen told journalists on Friday that Brussels would develop a new instrument, based on the Franco-German proposal, that could quickly restrict access to the European market.
Merz acknowledged that part of China’s advantage came from its competitiveness, innovation and strength in clean energy. But Europe and Germany, he said, also had to address what they regarded as unfair practices, such as subsidies and an “artificially undervalued” yuan.
The European Union and China, which Merz called a reliable partner, needed to discuss Beijing reining in its currency, industrial overcapacity and subsidies if it wanted to prevent Brussels from using the tool, he warned.
“We want to have a fair trade with China, in our joint and mutual interests; that is our goal, not to create a conflict,” he said. “But at the same time, we need to be ready to defend ourselves, to defend our industry.”
Beijing, meanwhile, has pushed back against what it views as a European attempt to extract concessions through pressure.
The Ministry of Commerce denied that a recently agreed cap on Chinese hybrid car exports amounted to Beijing giving in to Europe.
In a statement published on Friday, it urged Brussels to “harbour no illusions about extracting concessions through pressure, still less underestimate China’s determination and ability to defend its own interests”.
While Berlin and Paris are forming a united front on trade with China, Germany is also watching the political, financial and social turmoil across the Rhine with concern.
Scenes of violence and looting featured prominently across major German media. Public broadcaster ARD reported on what it called “France’s vicious cycle”: a self-feeding loop of high debt and spending, pressure to cut spending, social tensions, protests and weak government.
During a press conference on Monday, German government spokespeople expressed Berlin’s concerns about the scenes of violence but insisted that it still viewed France as an important and reliable partner. -- SOUTH CHINA MORNING POST
