(Deutsche Welle Chinese website) Over the past three years, the German government has been calling on German companies to reduce their dependence on China and increase investment in other Asian countries such as India. But so far, de-risking and diversification efforts have had little success. "Frankfurter Allgemeine Zeitung" wrote in a commentary titled "In Asia, why there are no signs of de-risking":
"The business community has not heeded the government's call. In the first half of this year, German investment in China increased by one-third compared with the same period last year. During the same period, the sales of German companies in China continued to decline, while the profits of Chinese companies in Germany increased rapidly. At the Berlin Economic Day event, German Foreign Minister Waldful warned business executives: Germany-China relations are increasingly out of balance, but there is no sign of any "resolute de-risking" moves.
The dissatisfaction of the German Foreign Minister is completely understandable. After the outbreak of the Russo-Ukrainian war, ensuring economic security has always been the core concern of the Alliance Party. Christian Democratic Union politician Spahn even proposed in his parliamentary group to replace China with Indonesia and other Southeast Asian countries with a population of 280 million. His logic is that wherever there is a large population and rapid economic growth, there will definitely be money to be made.
However, making money does not mean that German companies can make money. At the end of October, German Chancellor Mertz will make a brief stop in Southeast Asia when attending the Asia-Pacific Conference. This is also one of the most economically dynamic regions in the world, but Germany's core industrial sectors have almost no influence here. Among the ten countries in Southeast Asia, Volkswagen failed to enter the top ten best-selling cars. Only in affluent Singapore and smaller Malaysia can Mercedes-Benz and BMW be considered rivals for Japanese and Chinese cars. Component suppliers such as Bosch and ZF are in a better position locally, at least when it comes to traditional combustion engine vehicle technology. Battery manufacturing is firmly in the hands of Asian companies. Only in some small market segments, German high-tech products still have a place, but their share is also declining. "
"Frankfurter Allgemeine Zeitung" commented that although it is necessary to "diversify and de-risk" the German economy, in reality it is full of difficulties.
"In terms of scale and growth rate, India is the only market that can replace China. However, many German companies still say that they will only consider investing in India after five years. You know, India now needs German technology to achieve rapid rise. Affected by the tense relations between China and India, India has many restrictions on the introduction of Chinese technology. The India-EU Free Trade Agreement will be put to a vote in the near future.
When it comes to India, Germany's 22nd largest trading partner, Germans always list a long list of shortcomings: bureaucracy, corruption, poor infrastructure and poor sanitation, to name a few. Instead of cheering for their "shared values" with India, German companies are complaining about the caste system, nationalism and sluggish per capita income growth here that hinder progress: Indians are too poor and cannot afford German products. After all, India is not China. "
Taking down the fence - the beginning of happiness
Regarding Beijing’s recent moves to demolish fences on a large scale and build unbounded parks, Der Spiegel’s China correspondent wrote:
“In 2020, Beijing’s street fences totaled 2,500 kilometers, equivalent to one-eighth the length of the Great Wall. Building fences and walls has always been a Chinese strength and an important export: a large proportion of the world’s wire fences come from Anping, near Beijing. In the government’s view, the large number of fences makes Beijing 210 The transportation of 00,000 residents has become safer and more reasonable. Fences can not only reduce traffic accidents, but also block things that Beijing residents do not want to see. Building fences is a long tradition in China. In the imperial era, Beijing was a city with gates on all sides, and residents were prohibited from entering at night.
In 1949, after the Communists came to power, the city walls were completely demolished. But soon after, they began erecting new barriers. Tiananmen Square is the place where I see the most fences. In 1989, the government suppressed a large-scale protest here. The fences here are arranged in layers, sometimes four, sometimes five.
Now, those in power are finally realizing that it’s time to take steps to stop the proliferation of fences. Over the past few years, fences inside and outside the park and around the lawns have been gradually being removed. In Haidian District alone, 380 kilometers of fences have been cleared, which is equivalent to the distance from Berlin to Nuremberg. The government has launched the ‘Parks without Fences’ initiative, which is said to be aimed at increasing public satisfaction. Yes, happiness begins outside the walls. "
