Scholz: Xi opposing nuclear weapons in Ukraine reason enough to visit China



*

Must prepare for scenario where ties with China sour

*

Comments come day after Scholz trip to Beijing

*

Tells German CEOs to diversify away from China

By Andreas Rinke

BERLIN, Nov 5 (Reuters) - German Chancellor Olaf Scholz, who was heavily criticised for a trip to Beijing this week, said on Saturday his and Chinese President Xi Jinping's joint statement opposing the use of nuclear weapons in Ukraine had been reason enough for the visit.

Scholz's comments came a day after his visit to the world's second-biggest economy alongside German corporate CEOs, the first by a G7 leader since the COVID-19 pandemic.

"Because the Chinese government, the president and I were able to declare that no nuclear weapons should be used in this war, that alone made the whole trip worthwhile," Scholz said during an event of his Social Democratic party.

Xi, who secured a third leadership term two weeks ago, agreed that both leaders "jointly oppose the use or threat of use of nuclear weapons" over Ukraine, but refrained from criticising Russia or calling on Moscow to withdraw its troops.

Scholz, who has been criticised for seeming to continue a strategy that exposes Germany's economy excessively to China, its most important trading partner, said diversifying was key to limit possible repercussions should the relationship sour.

"We have a clear plan, and we are following it through. And that means diversifying for all the countries we trade with, especially, of course, a country that is so big and has such a large share of the world economy," Scholz said.

"We will continue economic exchange with China ... But it's also clear, we're going to position ourselves to be able to deal with a situation at any time where there are difficulties - whether it's 10 years from now or 30 years."

SCHOLZ TO GERMAN CEOS: 'DIVERSIFY NOW'

During his trip Scholz told business leaders, including the CEOs of Deutsche Bank DBKGn.DE , Volkswagen VOWG_p.DE , BASF BASFn.DE , Siemens SIEGn.DE , BMW BMWG.DE , Merck MRCG.DE and BioNTech 22UAy.DE , to not put diversification on the backburner, a delegation source said.

At the closed-door meeting, he said it would take around 10-15 years to completely de-risk.

A separate government source said the impression was that the message had sunk in and that companies were diversifying while developing China ties.

This is particularly key for Germany's carmakers active in China, the world's top market, including Volkswagen, which has repeatedly been slammed for its plant in the Xinjiang region given reports of human rights violations there.

Battery materials, which are needed for packs that power electric vehicles, are also in focus. German automakers depend on China for lithium, nickel and cobalt, while Europe has launched programmes to build its own supply but is not there yet.

Germany's business relationship with China has come under closer scrutiny since February when Russia invaded Ukraine, which led to the end of a decade-long energy relationship with Moscow and caused numerous companies to ditch their local businesses.

This has fuelled concerns over the potential consequences for Germany's economy should China invade Taiwan.

"Start now, don't put it on the back burner. Do it now," Scholz said at a party event in comments which appeared directed at business leaders regarding diversification.
Reporting by Andreas Rinke; Additional reporting by Christoph Steitz; editing by Jason Neely

Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.

Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.

Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.

Nous utilisons des cookies pour vous donner la meilleure expérience possible de notre site internet. En savoir plus ou modifier vos paramètres de cookies.

Avertissement sur les risques : votre capital est à risque. Les produits à effet de levier ne sont pas recommandés pour tous. Veuillez consulter notre Divulgation des risques