Germany's new China Strategy: Going with the wind

On July 13 the German government published its first China strategy. In a nutshell it is a plea to German businesses to diversify their supply chains in time to avoid economic collateral damage in times of geopolitical tension. The paper, which is available both, in German and English,wants to send a signal to Beijing as well as to German partners in Europe and the world: We have come to understand, first, that the world is fundamentally changing; second, that this is directly related to China's domestic and foreign policy actions; and third, that the conclusion has been drawn that we need to be prepared for potential conflicts and growing divergences in our relations with Beijing. It remains open, however, whether, how and to what extent the federal government will provide financial resources to implement the intended policy directions. The strategy does not provide for adjustments to existing structures. Thus, it remains difficult for the German government to bring coherence to its China policy.