German Finance Minister Tackles Overcapacity Concerns in China

German Finance Minister Lars Klingbeil addressed overcapacity issues with China during a Beijing visit, emphasizing potential EU action to protect markets. He highlighted Europe's need for unity in its stance with China. Supply chain diversification was suggested to mitigate disruptions over Chinese export restrictions.

During his visit to Beijing, German Finance Minister Lars Klingbeil addressed the issue of overcapacity in China, stressing that the European Union would take action if a resolution wasn't reached. Klingbeil expressed a preference for avoiding such measures but emphasized the importance of not leaving European and German markets at a disadvantage.

Klingbeil discussed several key topics, including German-Chinese cooperation in multilateral organizations and the ongoing war in Ukraine, during the Party Dialogue in Beijing. He emphasized the necessity of maintaining a coordinated approach among EU countries regarding relations with China. Collaboration within the European bloc is crucial to avoid presenting disparate views in China, he noted.

The relationship between Germany and China, two industrial giants, has faced challenges, particularly due to Chinese export restrictions on chips and rare earths, disruptions that have significantly impacted German companies. To prevent future supply chain disturbances, Klingbeil advocated for Germany to diversify its rare earth minerals sourcing despite obtaining assurances of reliable access from China.

(With inputs from agencies.)