Andreas Rinke and Sarah Marsh
CHONGQING/BERLIN (Reuters) – Chancellor Olaf Scholz on Sunday began a three-day tour of China to strengthen ties with top trading partner Germany and resolve differences over issues including China’s trade practices and its support for Russia.
The chancellor’s longest visit to any state since taking office is likely to be overshadowed by an Iranian attack on Israel. It is also being watched over Germany’s support for the European Union’s investigation into Chinese government subsidies to electric vehicle makers, which has become a controversial issue.
Scholz, who is traveling with several German leaders, began his journey in the southwestern metropolis of Chongqing. He will also visit Shanghai and Beijing, where he will meet Chinese President Xi Jinping and Prime Minister Li Qiang.
Upon arrival, Scholz condemned Iran’s strikes on Israel “in the strongest terms,” his spokesman said. Scholz was aware of events in the Middle East during the flight, government sources said.
German officials have said Beijing can play a positive role in cooling rapidly rising tensions in the Middle East.
Last year, China played a mediating role between Iran and Saudi Arabia, and Reuters reported that China asked Iran to help curb attacks on ships in the Red Sea by the Iran-backed Houthis or risk damaging business relations with Beijing.
However, Berlin’s overall position on China has become more critical since the war in Ukraine.
Germany also published its first China strategy last year, outlining “unfair practices” and risks to supply chains in a potential row over Taiwan and calling for “risk reduction.” However, efforts to diversify into China have so far been patchy.
Scholz will visit German car supplier Bosch’s hydrogen fuel cell plant in Chongqing on Sunday, drawing attention to an area of growing tensions.
The EU is conducting several investigations into whether Chinese exports of clean technologies such as battery electric vehicles, which it says have benefited from government subsidies and could harm local manufacturers.
The German auto industry fears the investigations could lead to a trade war that could damage their prospects in the world’s largest auto market.
Scholz is also expected to consider China’s support for Russia. German officials said bluntly on Friday that Beijing’s support and exports to Russia are allowing Moscow to wage an aggressive war in Ukraine and causing China’s “growing loss of reputation” in Europe and beyond.
“The point is that China does not support Russia in waging a brutal war against its neighbor Ukraine,” Scholz wrote in a post on the social network X on Saturday.