Closer China-German ties to benefit 5G development, post-pandemic recovery

By GT staff reporters Source: Global Times Published: 2020/8/31 19:38:40

Closer ties to benefit 5G development, post-pandemic recovery


Passengers wearing face masks are seen at the main train station in Frankfurt, Germany, on Aug. 29, 2020. (Photo by Kevin Voigt/Xinhua)



Rising US protectionism won't hinder economic cooperation between China and Germany, and German companies - no matter how long they have been in the world's second-largest economy - will eye China's long-term potential as the engine of the post-pandemic global economy.

Analysts said that if the two could cooperate in 5G and other new and high technologies, Germany - which has taken a lead in Europe in 5G deployment - could prevail the upcoming years and continue to lead in the global market place. 

"In the medium and long term, we are very confident in the Chinese market. When you look at the underlying key performance Indicators, they haven't changed just because of COVID-19 and the impact of six or seven months," Jochen Goller, president and CEO of BMW for China, said.

The company has eight entities in China, half located in Beijing. Beyond the car business, the firm is exploring opportunities such as auto finance by establishing BMW China Auto Finance and Herald Leasing.

Goller also speaks highly of the cooperation between China and Germany during the pandemic. "For example, by sending masks in the beginning to Germany when there was a shortage there - something we really appreciate. I think it's always kind of win-win. Both countries, for example, have a lot of skills, a lot of competencies. I would say we need to team up."

The senior executive described China's economic recovery amid the pandemic as a V-shaped one. 

"Look at car sales at BMW, obviously in the first quarter we were severely hit by the sudden outbreak of coronavirus. But we saw a V-shaped recovery with a very strong performance in the second quarter and this is, again, I think now China is, again, the driving force of the global economy." 

A quick Chinese recovery and stronger economic cooperation with China represents a life-line for Germany and Europe, Stephan Ossenkopp, a Berlin-based expert associated with the Schiller Institute, an international think tank, told the Global Times on Monday. 

"China began to feed our group's global businesses in the second quarter, as our US and German businesses almost came to a halt due to the pandemic," Wang Yingtao, head of the Beijing subsidiary of Germany-based dental material manufacturer DMG, told the Global Times on Monday.

Wang noted that given promising bilateral ties, the company has decided to expand its scale and hiring, and move part of its production lines to China. "The China market is our priority now."

Experts said that Chinese State Councilor and Foreign Minister Wang Yi's visit to Germany will mean better bilateral ties, which will pave the way for improving investment environment for businesses from both countries.

Wang will end his week-long European trip on Tuesday, with Germany as his last stop, with some forecast that issues like Huawei's 5G may be on the agenda.

Analysts noted the inclusion of Huawei in Germany's 5G construction could save the country's telecommunications carriers a large amount of money, and the money could be used to revive its slowing economy during the post-pandemic period.

The US has been pushing its allies to abandon Huawei's 5G, citing so-called national security risks. US Secretary of State Mike Pompeo has just wrapped up his trip to Europe, attempting to build an alliance against Beijing and pressuring Huawei.

"Wang's visit to Europe comes shortly after Pompeo's. However, the contrast couldn't be starker. While Pompeo was spewing fury at China and threatening Russia, the Chinese foreign minister is offering cooperation to achieve a global economic system that works for all," said Ossenkopp.

Wang is stressing that China is continuing to open up its market, and this message comes as a sign of trust and an offer of further economic opportunities, so the common interest clearly goes in the direction of closer ties and enhanced cooperation, Ossenkopp added. 

Germany should use its EU presidency position to enhance all forms of cooperation under the Belt and Road Initiative, which is still the best vehicle for international infrastructure building projects, he noted.


Newspaper headline: German firms increase bets on China


Posted in: ECONOMY

blog comments powered by Disqus