China and Germany affirmed their shared commitment to building an open economy and promoting global trade during Chinese President Xi Jinping’s state visit to Berlin today. German Chancellor Angela Merkel and President Xi Jinping presided over a series of business deals between their countries. Two countries issued a joint statement, which proclaimed the establishment of the China-Germany comprehensive strategic partnership.
With Germany a key trade partner of China, Xi and Merkel talked about 1 billion euro agreement for Germany carmaker Daimler to expand the production of its joint venture with Beijing Automotive Group (DW).
According to Xinhua News Agency, “In the document, China and Germany said they are opposed to trade and investment protectionism and, as both are major exporters, intent on cultivating a fair competition order in the international market.” Two countries will also continue to broaden their economic ties and provide fairer treatment for their enterprises investing in each other’s market. What is more important is that the two sides agreed that fair market access and protection of property rights are significant to fostering healthy economic developments. They will work together to improve these issues.
Although this was his first visit to Europe as president, Xi was able to make stronger economic ties with the European countries. These agreed investment deals between China and the EU will lead to a future free trade agreement, opening up Chinese market more.
(They also talked about the human right issues in China and the current Crimea crisis. Interestingly, Xi said China does not have any interest in the Crimea crisis.)
7 Responses to China, Germany vow to push for open world economy
This article is very fitting in our class discussions about China’s transition to more of an open market economy. Also, I was interested in seeing the bit about the joint venture between Daimler and Beijing Automotive after reading about GM’s experiences in such a joint venture. I’m curious to know if they went through the same types of negotiating processes.
China is indeed in the process of opening up its market. However, I feel like Xi Jinping is trying to accelerate the process. I also think that he is a bit liberal (compared to the previous presidents). This might be a good news for the rest of the world.
If anybody know any details of that relationship please share…
You may find this useful:
It has some information about the negotiations and impacts of the joint venture
Hopefully this will be a genuine motion set forth by China, but this may be the Chinese government saying what they think people want to hear. The government will do what they think is best for the Chinese government and if at this moment it is free markets, then they will endorse free markets. But if tomorrow it is socialism, they will endorse that. This isn’t a statement of belief in the system but what they think will help them at the moment.
The Beijing Jeep experience is now so many years ago that probably few remember the details – 5 years means a world of change, including the availability of locally-made parts from global suppliers. Then there are alternative suppliers of cars such that joint venture partners have a better negotiating position – including JVs with more than one foreign firm so that (as in American Wheels) “if you don’t help us [VW], will give more help to your biggest rival [GM].”