China, Germany hold 4th high-level financial dialogue

China and Germany have reached a series of outcomes during high-level financial talks held in Beijing, a clear signal that both countries are moving to ease the recent spurt in trade tensions and secure a stable foundation for mutually beneficial cooperation, analysts said.

As the world's second-largest and third-largest economies, respectively, China and Germany create a stabilizing effect across the European Union when the two countries engage constructively, they added.

The comments came after Vice-Premier He Lifeng and German Vice-Chancellor and Minister of Finance Lars Klingbeil co-chaired the 4th China-Germany High-Level Financial Dialogue on Monday in the Chinese capital.

A statement released by China's Ministry of Finance on the same day said that both sides are committed to bilaterally and multilaterally strengthening macroeconomic policy coordination and jointly promoting global economic recovery and sustainable development.

The two nations have reaffirmed their support for a rules-based, fair, open, transparent, inclusive, equitable, sustainable and nondiscriminatory multilateral trading system with the World Trade Organization at its core, the statement added.

The high-level talks took place amid ongoing trade tensions between the two countries. Earlier this month, Germany announced plans to reassess its trade policy toward China, with scrutiny covering energy, raw material imports and Chinese investment in critical infrastructure. Berlin also voiced support for proposals made by the EU to increase tariffs on foreign steel, including steel imports from China.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said the dialogue's substantive outcomes, spanning financial market access, green transition cooperation and bilateral trade and investment, reflect concerted efforts to reanchor the relationship in shared economic interests. China and Germany share a robust foundation for cooperation across various sectors in advanced manufacturing and green energy, and they should uphold the multilateral trading system and fair competition through frequent dialogue, Zhou said.

The German business community expressed the hope that the two countries would further strengthen their economic cooperation.

Zeiss Group, a German manufacturer of optical systems and optoelectronics, said it plans to enhance its local innovation capabilities in the Yangtze River Delta region and the Guangdong-Hong Kong-Macao Greater Bay Area.

"China is a big market for all the players. The ecosystem we can find here is great," said Martin Fischer, president and CEO of Zeiss China, adding that the company is committed to further increasing its localization in China.

Preliminary data released in late October by the German Federal Statistical Office showed that from January to August, China surpassed the United States to regain its position as Germany's largest trading partner.

Bilateral trade between Germany and China reached 163.4 billion euros ($189 billion) during the period, marginally higher than the 162.8 billion euros in trade value between Germany and the US.

Shaping EU's policy

With Germany being the EU's largest economy and one of its most influential voices, its approach could help shape the EU's policy toward China, analysts said.

Gao Lingyun, a researcher at the Chinese Academy of Social Sciences' Institute of World Economics and Politics in Beijing, said that efforts made by China and Germany to stabilize their economic ties through constructive dialogue could establish a critical foundation for greater stability in the broader China-EU relationship.

According to a report released last week by the EU Chamber of Commerce in China and global consultancy Roland Berger, "uncertainty" continues to loom over Chinese companies operating in Europe, with 81 percent of surveyed enterprises perceiving "rising unpredictability" in the EU's business environment.

In late October, China's Commerce Minister Wang Wentao held a video call with EU Commissioner for Trade and Economic Security Maros Sefcovic at the latter's request, and engaged in in-depth discussions.

wangkeju@chinadaily.com.cn