BEIJING (dpa-AFX) - During her visit to China, German Economy Minister Katherina Reiche called for fair competitive conditions for German companies. 'Competition is not foreign to us. Competition drives us forward,' the CDU politician stated at the start of a meeting with China's Commerce Minister Wang Wentao in Beijing. However, competition must be structured in a way that is mutually beneficial and transparent. Reiche emphasized that 'reciprocity' remains the guiding principle of the Federal Government. This implies that companies in both countries should enjoy market access and competitive conditions that are as comparable as possible.

Reiche intends to discuss supply chains and rare earths

The Minister expressed hope to discuss supply chains, access to rare earths, and market access conditions with Wang. This also involves examining how China supports its companies, how Germany supports its own, and how both approaches can be brought into a 'balanced state.' Reiche highlighted that China has invested enormously worldwide in recent years. At the same time, she pointed to China's substantial trade surplus of approximately 1.2 trillion euros.

At the beginning of her visit to China, Reiche advocated for a 'trustful and open exchange.' This is 'very, very important' to her, she said during a meeting with Zhou Haibing, a Vice Minister of the National Development and Reform Commission. The agency is considered one of China's most important economic policy planning bodies.

Reiche seeks resilient economic relations

Reiche referred to 'very good bilateral talks' recently held by Chancellor Friedrich Merz with China's state and party leader Xi Jinping. It is now her task to 'pick up this thread.' She also alluded to Zhou's background as a civil engineer: the importance of structural integrity and resilience is well known to him. 'This is how we want to shape our relations,' the Minister said.

In Beijing, Reiche also plans to speak with Vice Premier He Lifeng, who shares responsibility for trade issues within the Chinese government. The former manager is accompanied by a delegation of German corporate representatives, including BASF CEO Markus Kamieth and Thyssenkrupp Chairman Miguel Ángel López Borrego. On Thursday, Reiche plans to visit companies and meet local government representatives in the southern Chinese industrial hub of Guangzhou.

Trip accompanied by numerous contentious issues

The trip takes place at a time when Berlin and Beijing seek to deepen their economic policy dialogue. Chancellor Merz restarted talks with Beijing during his trip to the Far East in late February. At the same time, trade imbalances, complaints about unfair competition, and debates over stricter EU protective measures are weighing on the relationship.

China is Germany's most important trading partner, although far more goods are imported from the People's Republic than exported there. According to the Federal Statistical Office, trade volume last year stood at just over 250 billion euros. Germany imported goods worth 170.6 billion euros from China, up 8.8 percent from the previous year. In contrast, German exports to China fell by 9.7 percent to 81.3 billion euros.

Reiche: We have not stated interests clearly enough

Even before her arrival in Beijing, Reiche had pointed to growing pressure from the sheer volume of Chinese exports. 'Due to the trade dispute with the USA, China is redirecting its goods to new markets,' she told the 'Kölner Stadt-Anzeiger.' At the same time, Germany has not stated its interests clearly enough in the past. 'The Federal Government is now articulating our interests, calmly and in a solution-oriented manner,' she said. Open markets are a 'fundamental basis of our economic success.'

Another contentious issue is China's export controls on critical raw materials. As a result of the trade dispute with the USA, China requires export licenses for seven rare earths and magnets made from them. For the export-oriented German economy, this dependence is delicate, as companies in Europe are also affected by the Chinese restrictions.

German companies demand clear language

Corporate representatives called on Reiche to use clear language in Beijing. The European Chamber of Commerce in China demanded that the Minister of the EU's largest economy must make it clear that the European Union acts as a single entity. Furthermore, she must clarify that Europe is certainly ready to do business with China under the right conditions, said Chamber President Jens Eskelund.

The data clearly shows that more firms are shifting their production to China than away from it. 'We do not see derisking (the reduction of one-sided dependencies) becoming a reality - if anything, it appears that companies are becoming more dependent on China as a sourcing and production location for their products,' he said./jpt/DP/zb