Germany's Trade Balancing Act with China: A Quest for Critical Raw Materials

Lars Klingbeil, Germany's finance minister, visits China amid growing trade tensions and supply chain vulnerabilities. The visit focuses on securing critical raw materials and addressing trade deficits, highlighting the importance of maintaining balanced economic ties with China amid U.S. trade policy impacts.

Germany's finance minister, Lars Klingbeil, has embarked on a pivotal visit to China as Berlin seeks to navigate its complex relationship with Beijing. The trip marks the first instance of an official from the new coalition government visiting China, underlining the urgency to address widening trade gaps and supply chain disruptions.

Klingbeil's agenda includes discussions on critical trade issues, notably China's restrictions on rare earth elements. His trip carries the backing of EU trade officials, aiming to secure better access to essential raw materials and counteract Chinese industrial overcapacity, which threatens Germany's economic stability and employment.

The visit also aims to recalibrate Germany's broader China strategy in light of rising geopolitical tensions and trade challenges exacerbated by former U.S. President Trump's policies. Efforts to mitigate the impact of China's export control measures continue as lawmakers in Germany prompt a comprehensive reevaluation of trade tactics with China.

(With inputs from agencies.)