With China's unprecedented economic boom, Germany is insisting that the European Union should make necessary economic amendments in order to maintain the world's trade balance. With the continuing improvement of China's economy, many are expecting the Asian superpower to take the reign of global trade within the years to come.
Germany's former ambassador to China Michael Clauss said that the European Union looks "tired" when directly compared to China's economic growth. Mr. Clauss said during the 28th anniversary of Germany's reunification that the European Union should make the necessary actions to balance out China's growing economic power. Many believe that Mr. Clauss' statement will serve as a reality check regarding the current economic state of the European Union.
Mr. Clauss also said that China is growing to be a major global player, not only economically but politically as well. Delivering his speech at the Royal Museum for Art and History in Brussels, Mr. Clauss highlighted China's innovation and economic success. He also pointed out that the European Union is slowly being left behind both economically and on the political standpoint.
This is not the first time the former ambassador pointed out China's sudden rise to the international economic stage. In 2017, Mr. Clauss said that China's economic miracle will ultimately lead the country on top of the global economic stage.
Lately, several Chinese firms have started investing in German firms. China's growing investment in Germany has been going on since 2016. Two years ago, several Chinese firms have invested a total of $12.6 billion in Germany. That is more than all the previous 10 years combines, according to the data from the European Council on Foreign Relations.
China's growing influence over Germany's tech and engineering sector is highlighted by the staggering number of Chinese acquisitions of German firms. In 2016, various Chinese firms have bought 68 German companies. In 2017, 57 German companies were bought by various Chinese companies. Most of these acquisitions are focused mainly on the technology and industry sectors.
Recently, Chinese car manufacturer Geely purchased a 9.7 percent stake in German auto manufacturer Daimler. This acquisition paved the way for multimillionaire Li Shufu to become the biggest shareholder of the German auto giant.
This massive acquisition and investment moves from various Chinese firms are fueled by China's initiative called China in 2025, one of President Xi Jinping's flagship programs. China 2025 aims to turn China as the world leader when it comes to the industry and technology sector.
