German Finance Minister Lars Klingbeil concluded a three-day official visit to China, during which he discussed cooperation and participated in the fourth China-Germany High-Level Financial Dialogue. During this visit, Minister Klingbeil addressed the issue of overcapacity in China and underscored that the European Union may take necessary measures if a resolution is not reached.
The two parties reaffirmed their commitment to enhancing economic and financial cooperation and expanding bilateral market access based on principles of fair competition. A joint statement issued by China’s Ministry of Finance following the meeting identified 27 points of consensus reached by both Beijing and Berlin. Additionally, both sides pledged to uphold international and multilateral cooperation, oppose unilateralism and trade protectionism, and support the roles of the Group of 20 and the World Trade Organisation (WTO).
Chinese Vice Premier He Lifeng co-chaired the fourth China-Germany High-Level Financial Dialogue alongside Minister Klingbeil in Beijing, where they arrived at a series of mutually beneficial outcomes. Both officials highlighted the need to strengthen bilateral relations and foster open, rules-based global trade.
“A healthy and stable China-Germany relationship serves the interests of both countries and meets the expectations of China and Europe,” said Minister Klingbeil during a press conference after the dialogue.
On the second day of his visit, Minister Klingbeil addressed topics including overcapacity, German-Chinese collaboration within multilateral organisations, and the ongoing conflict in Ukraine. He emphasised that, if necessary, decisions may be made at the European level to better protect European markets. “I would prefer to avoid that scenario; however, ultimately, Europeans—and we Germans—must ensure we are not left behind,” he stated.
In response to inquiries concerning divisions within the European Union regarding relations with China, Minister Klingbeil noted the importance of coordination among European nations. He confirmed having communicated with his counterparts in the bloc before his trip, stressing, “It is crucial that Europe, where we share significant common ground, presents a unified front in China.”
The relationship between the two industrial powers has experienced strains, particularly amid Chinese export restrictions on chips and rare earths, which have significantly disrupted German enterprises.
Minister Klingbeil emphasised the need for Germany to diversify its supply chains to mitigate these disruptions. He further indicated that the Chinese side provided assurances regarding reliable access during their discussions.
“Nonetheless, I wish to emphasise that we must ensure preparedness within Germany,” Minister Klingbeil concluded.
