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German Finance Minister Visits Beijing As Trade Gap Widens, Supply Chain Strains Grow
Germany’s finance minister arrived in Beijing on Monday, becoming the first representative of the country’s new coalition government to visit China, as Berlin faces growing pressure to demonstrate control over its China policy amid a widening trade gap and mounting supply chain concerns.
Lars Klingbeil’s trip comes more than six months after the conservative led coalition took office and follows last month’s cancelled visit by Foreign Minister Johann Wadephul after China declined most meetings on his proposed agenda.
German officials said Klingbeil’s talks would focus on major trade issues, including Chinese restrictions on rare earths. A finance ministry source said Germany had coordinated its positions with European Union officials responsible for the bloc’s trade policy.
“Access to critical raw materials and the reduction of Chinese overcapacity in sectors such as steel and electric mobility are of great importance for the economy and jobs in Germany,” Klingbeil said in Berlin before heading to Beijing.
The coalition is also under pressure domestically to show it can secure meaningful engagement in Beijing and manage a relationship that has become increasingly complex.
US President Donald Trump’s trade war has weakened German exports and left Berlin exposed to a surge in diverted Chinese imports, deepening supply chain vulnerabilities. Concerns have intensified over access to rare earth metals and automotive chips.
Klingbeil is scheduled to meet Vice Premier He Lifeng for the German Chinese financial dialogue, a format created in 2015. He is travelling with Bundesbank President Joachim Nagel and a small delegation from German banks and insurance firms.
“Europe and China are in a very ambiguous relationship. On the one hand, we need them; on the other hand, we are concerned by security issues,” said Denis Depoux, global managing director at Roland Berger.
On Wednesday, Klingbeil will travel to Shanghai to meet leaders of German mid sized companies before continuing on to Singapore.
