Germany's influential machine-tool makers' federation warned Tuesday against an abrupt break from China, amid growing scrutiny of business ties between Europe's top economy and the authoritarian country.

German firms have faced calls to reduce their heavy dependence on the world's number two economy following Russia's invasion of Ukraine, and subsequent move to slash energy exports to Europe.

But the VDMA industry body said that China was an "enormously important market" for its 3,500 members, and warned against moving too hastily.

"The Chinese market cannot be replaced in the short and medium term," VDMA president Karl Haeusgen said. "Exports to China provide well-paid and highly qualified jobs in Germany."

He instead called for Berlin to provide German business support and "help to open up new sales markets", and urged the European Union to seal new free trade agreements in Asia.

Haeusgen did however recognise China's economic policies were having a negative impact on foreign companies and called on Berlin to reassess its relationship with Beijing.

But he also defended flourishing business ties with China over the years, saying "economic openness" had helped to lift "hundreds of millions" of Chinese people out of poverty.

He warned of devastating consequences if China attacks Taiwan, saying the West would likely react in the same way it had after Moscow invaded Ukraine in February.

Russia has faced a barrage of sanctions since the start of the war, with many Western companies shuttering their Russian operations.

"If China attacks Taiwan, we have a whole new game," Haeusgen said.

Beijing views democratic, self-ruled Taiwan as part of its territory to be seized one day, and has been ramping up military, diplomatic and economic pressure on the island.

The VDMA's calls for business to diversify into new markets beyond China chimes with the stance of German Chancellor Olaf Scholz, who has also warned against a sharp "decoupling" from the Asian giant.

In November, Scholz visited China, accompanied by a delegation of top business executives, sparking anger at a time of heightened scrutiny over Germany's close economic ties to authoritarian regimes.

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

EU agrees on 'carbon mechanism' at borders for industrial imports
Brussels (AFP) Dec 13, 2022
EU member states announced Tuesday the adoption of a mechanism that would bring the bloc's industrial imports under environmental standards by charging for the carbon emissions linked to their production. Known as the "Carbon Border Adjustment Mechanism" (CBAM), the agreement will cover industrial imports from the regional bloc's 27 member states, targeting the highest polluting products first. "CBAM will be a crucial pillar of European climate policies," said Mohammed Chahim, a member of the E ... read more