Xi warns Scholz against economic protectionism at Beijing meeting

Chinese President Xi Jinping (R) welcomes German Chancellor Olaf Scholz at the State Guest House. Michael Kappeler/dpa

Chinese President Xi Jinping has warned German Chancellor Olaf Scholz against protectionist economic measures during a meeting at the State Guest House in Beijing.

Germany and China depended on industry and supported free trade, Xi said on Tuesday, according to Beijing.

"In this sense, both sides should guard against the rise of protectionism," Xi was quoted as saying.

Since the German government presented its China Strategy 2023, the aim has been to reduce dependence on the world's second-largest economy in critical sectors and thus also minimize the risk for Germany.

Xi has countered this by saying that cooperation between Germany and China does not represent a risk, but is "a guarantee for the stability of relations."

The Chinese leader cited examples of industries traditionally strongly represented in China, such as mechanical engineering and the automotive industry.

Tensions over subsidized Chinese export goods on foreign markets and industrial overcapacity have been a major concern of Europe and the United States. They say Beijing's state investment keeps prices artificially low, which puts their domestic firms at a disadvantage. Examples include electric cars, which are the subject of an EU anti-subsidy investigation, and the solar industry.

Chinese President Xi Jinping (R) welcomes German Chancellor Olaf Scholz at the State Guest House. Michael Kappeler/dpa
Chinese President Xi Jinping (R) meets with German Chancellor Olaf Scholz at the State Guest House. Michael Kappeler/dpa

© Deutsche Presse-Agentur GmbH