Between the US and a hard place, Germany's Scholz reheats China ties
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German Chancellor Olaf Scholz is visiting China to strengthen ties amid tensions with the US and EU. German companies are seeking fairer access to the Chinese market, which they believe still favors local firms. China, on the other hand, will likely urge Germany not to support EU measures against Chinese goods. The visit is also overshadowed by the possibility of Donald Trump returning to the White House and his threat to increase trade tariffs on all countries. Scholz is expected to discuss China's support for Russia's wartime economy and the need for Europe to position itself between the US and China. German businesses have expressed concerns about discrimination in the Chinese market and China's subsidies for its firms. Efforts by Germany to diversify from China have been patchy, and measures to curb the use of Huawei equipment have not materialized. Scholz's visit is seen as a positive sign by China, as trust between the two sides is lacking. The EU faces a dilemma as it could benefit from cheap Chinese products but risks damaging its own industries. German companies insist on open markets, as losing the Chinese market would be more costly than import tariffs on Chinese goods.
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