A report suggested that China and the US should finalize its trade deals, balance trade accounts, and develop a constructive relationship with each other as their trade war is hurting the world economy. Nonetheless, Germany still expressed its willingness to expand its business deals with China despite the trade war.
According to a CNBC News report, the United States and Germany have been allies for years and the latter remains a free-rider in the former's economy. The trade position of Germany with the US was also perceived to not generate growth and employment throughout the global economy and that the China-US trade war continues to hurt Germany's economy.
The report revealed that in the first two quarters of this year, the European Union (EU) to which Germany is a member thereto experienced a 102.7-billion-euro trade surplus with the US and a trade deficit with China amounting to 127.4 billion euros. Despite the EU's concerns on unrealized trade deals with China, Germany continues to eye the Chinese market as a great potential for its businesses.
Germany is said to advocate a softer approach with its trade deals with China. The report indicated that China has reduced its surpluses on German trades and the latter aims to make the former its trade focal point.
In other news, Expres.co.uk reported that French President Emmanuel Macron has been urging the EU including Germany to pose a united front with its dealings with China. China President Xi Jinping visited Paris last March 2019 and Germany Chancellor Angela Merkel along with EU Commission chief Jean-Claude Juncker joined them at the Elysee Palace. Subsequently, Juncker also visited China last September which showed a potential expansion of German businesses into China.
At present, German exports to China is half of the total exports of France into the country. According to Marcon, the Europeans have moved to China without coordination making China perceive that the EU is divided. Nonetheless, the EU pushes for more trade deals with China in the hopes of proving the latter's commitment to opening its financial markets to EU countries including Germany, reported DW.
Macron then revealed during a meeting with French and German companies in Shanghai that the EU would finalize its trade agreements with Beijing on protected geographical indications. Macron was also accompanied by German Education Minister Anja Karliczek and EU trade commissioner Phil Hogan.
Last Tuesday, all of the EU participants agreed to attend the second Shanghai International Import Expo in the hopes of expressing the EU and China's trade positions thereby opening doors for German and French businesses' entry into China's markets.
