(Business) Relationship with China Put to the Test – Is a Rupture Imminent?

China's head of state and party leader Xi Jinping wants to lead the People's Republic to the top of the world again, as suggested by his statements at the 20th Party Congress of the Communist Party last year suggest this. China wants to assume a geopolitical, economic and technological leadership role. In the intervening time, however, the country's economic growth has taken a massive hit.

Supply-chain turmoil during the covid crisis and also China's stance in the Ukraine war have made Germany and Europe aware of the risks that dependence on China can entail. Whereas economic policy and business decisions used to be based on economic criteria, geopolitical factors such as stability and political security are now increasingly coming to the fore.

What do all these developments mean for future business relations with China? How should Europe position itself?

Professor Xuewu Gu, Chair of International Relations at the University of Bonn, has addressed these questions, among others, at the Munich Economic Debate.

Information on the Munich Economic Debate

The event was part of the series "Business Model Germany - Do We Have to Reinvent It?"

Germany's business model will no longer be able to secure prosperity in Germany in the coming years. Until now, we have been a strong export nation with a strong focus on China. Germany has put the country's security in the hands of the U.S. and has preferred to spend its resources on social security rather than on armaments. In terms of energy policy, we have taken a special path and at the same time made ourselves dependent on Russia for supplies. Since the framework conditions have changed radically in a short time, this orientation must be fundamentally reconsidered.

• Which foreign trade partners should Europe look for in a geopolitical constellation where China is increasingly isolating itself?
• How can the competitiveness of German industry be restored in an environment of sharply rising energy prices?
• What does it mean for the economy and society if new priorities have to be set in budgetary policy?
• Is inflation leading to social discord?

Moderator: Lisa Nienhaus, Head of the Economics Editorial Office of Süddeutsche Zeitung

Presentation language: German

The event took place in cooperation with Pillars - Pathways to Inclusive Labour Markets.