China’s Premier Li Qiang told Germany’s top CEOs that a lack of cooperation was the biggest risk during a visit to urge for deeper ties as Europe strives to minimize its dependence on Asia’s economic giant.
I met with Mercedes-Benz (MBGn.DE) and Siemens Energy (ENR1n.DE) CEOs in Berlin on Monday before Chinese-German government meetings on Tuesday.
On June 22–23, the premier will travel to Paris and attend a finance conference.
“We should not artificially exaggerate ‘dependence’, or even simply equate interdependence with insecurity,” he warned Germany’s top corporate executives, according to Xinhua.
“Lack of cooperation is the biggest risk, and lack of development is the biggest insecurity.”
His first foreign tour began in Germany, highlighting Asia’s linkages to Europe’s largest economy. German enterprises export and buy products from China, Germany’s largest trade partner.
The trip comes as the EU seeks to reduce its dependence on China, particularly for critical minerals and products needed for its green transition. Russia’s invasion of Ukraine has made it warier than letting rivals access military technologies.
On Tuesday, the European Commission will propose steps to mitigate security risks from outbound investments and strengthen export controls on dual-use items.
Germany is considering a tougher China strategy. It’s also evaluating Huawei’s digital infrastructure equipment.
China hawks predicted Li would encourage German companies to persuade the government to reduce national and EU regulations on business with China.
Li encouraged the German CEOs to manage risk, not governments.
“Enterprises have the most direct and acute sense of risk, and know how to avoid and deal with it, so we should return the leadership of risk prevention to enterprises,” he said.
After government discussions on Tuesday morning, Li will attend the German-China business roundtable this afternoon before traveling to Munich.
A Siemens official confirmed that the Chinese team would briefly meet with Siemens CEO Roland Busch in Munich on Wednesday.
Two sources claimed BMW (BMWG.DE) CEO Oliver Zipse would join the Munich trip. BMW Brilliance Automotive (BBA), a Chinese joint venture with Brilliance Auto Group, is majority-owned by BMW.
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