Full Breakdown
China and Germany Urge Against Trade War Amid EU Tensions
By Drooid · · How we work
Core Call for Stable Trade Relations
On September 22, Chinese Foreign Minister Wang Yi told German Foreign Minister Johann Wadephul in a phone conversation that China and Europe should avoid a trade war, emphasizing their status as “comprehensive strategic partners.” Wang framed mutual cooperation as the “right choice” for both sides and urged dialogue to address each other’s concerns. The German foreign ministry echoed the sentiment, noting that a stable global economy benefits China, Germany and the broader EU.
Background and Context
Germany has been a prominent voice within the EU warning of “unbalanced trade” with China, citing issues such as industrial overcapacity and an undervalued Chinese currency. These concerns have fueled calls for a more level playing field in bilateral trade. Simultaneously, the international environment is marked by rising unilateralism and de-globalisation pressures, which both ministers identified as challenges to free trade.
Key Positions and Mutual Expectations
Wang reiterated that the one-China principle underpins China-Germany relations and urged Germany to uphold this principle while taking concrete steps to safeguard peace and stability across the Taiwan Strait. He also called on Germany to promote free trade within the EU, reject protectionism, and play a constructive role in EU-China dialogue.
Wadephul responded that Germany-China relations have maintained “sound momentum” and affirmed Germany’s firm adherence to the one-China policy. He expressed a desire for further high-level exchanges, new intergovernmental consultations, and deeper practical cooperation in trade and the economy. Both sides agreed that economic and trade disputes between China and the EU should be resolved through dialogue and consultation.
Broader Implications
The exchange signals a joint effort to temper escalating trade tensions between China and the EU, with Germany positioned as a bridge for broader European engagement. By stressing multilateralism and a “real level playing field,” the ministers aim to preserve a stable global market while navigating geopolitical frictions over Iran, Ukraine and Taiwan.
Outlook for Future Engagements
Both ministries indicated that upcoming Germany-China intergovernmental talks will focus on expanding cooperation and addressing remaining trade concerns. The continued emphasis on dialogue suggests that, for the near term, both parties intend to manage disputes through diplomatic channels rather than resorting to protectionist measures.