30 German companies in China say Germany should shift its geopolitical orientation from the USA towards China

German managers are calling for a closer partnership with China, claiming the country has long been a technological leader. Despite Trump, the coalition government wants to strengthen the transatlantic alliance.

The plan is delicate, as those involved know. Three dozen German companies in China have jointly developed a catalog of recommendations for the Merz cabinet. They want to shift the federal government’s geopolitical orientation. China should once again be viewed more as a partner, not as an adversary. The managers see the international upheaval caused by [Donald Trump](https://archive.ph/o/L98m6/https://www.faz.net/aktuell/politik/thema/donald-trump) ‘s trade policy as a perfect opportunity for a change of course. “More effort, not less,” is needed in China “to remain economically relevant,” states the document, which was obtained by the Frankfurter Allgemeine Zeitung.The signatories include representatives from DAX-listed companies and medium-sized businesses. No one wants to be publicly associated with the document. The fear of being branded a naive pro-China is too great. In English, the term “panda hugger” has become established for this, referring to a close embrace with the most popular animal of the People’s Republic and thus of the Communist Party.

# “Panda-Huggers” against Transatlanticists

The companies’ initiative is unlikely to go down well in Berlin. As different as CDU leader [Friedrich Merz](https://archive.ph/o/L98m6/https://www.faz.net/aktuell/politik/thema/friedrich-merz) and SPD leader Lars Klingbeil are, neither is willing to let the transatlantic partnership go unchallenged. Merz led the Atlantik-Brücke, an association for fostering relations between Germany and the USA, for ten years. SPD leader Lars Klingbeil is a member and lived in the United States for a time. In the coalition agreement, the CDU/CSU and SPD aim to expand transatlantic relations in several areas. The coalition partners even consider a free trade agreement a possibility. With regard to China, however, the “de-risking” process is to be continued, including with an expert commission that will issue annual recommendations for further reducing dependence.German business representatives are less than pleased with this approach. “The focus on China as a ‘systemic rival’ does not correspond to the reality of German companies in China,” said Oliver Oehms, head of the German Chamber of Commerce and Industry in Beijing, commenting on the coalition agreement. From the Chamber’s perspective, the Chinese market is “crucial for the global competitiveness of German companies.” Oehms demanded: “That’s why we need more support from the new federal government, which combines ‘de-risking’ with a targeted engagement in China.”The authors of the list of demands put it more sharply than the head of the Chamber. The three-page document speaks of a “de-risking paradox.” “There is a contradiction between the required risk minimization (de-risking) and the necessary localization on the ground.” The thrust is clear: “Risk management should not lead to a reduction in China commitment,” it states at one point.