China, Germany stress ties amidst global trade uncertainty
BEIJING/BERLIN: Chinese President Xi Jinping and German Chancellor Friedrich Merz in a call on Friday highlighted the importance of their countries' relationship as both China and Europe are trying to tackle uncertainty caused by U.S. tariff policies.
Europe and China are among the biggest trading partners of the U.S. and have deep trading ties with each other.
Chinese-German trade volume alone accounted for around 246 billion euros ($279 billion) last year, according to official figures.
Germany has in recent years sought a difficult balance in relations with China, seen by Berlin as both a strategic rival and a vital trading partner whose giant market has buoyed Germany's large export-driven economy.
In the call, Xi noted changes in the world unseen in a century, with 'intertwined turmoil and transformation,' official broadcaster CCTV reported.
'China is willing to work with Germany to open a new chapter in their all-round strategic partnership, to lead China-EU relations toward new development, and to contribute to the stable growth of the global economy,' Xi was quoted as saying.
Merz's spokesperson said both leaders emphasized their willingness to cooperate to overcome global challenges.
'Chancellor Merz emphasized the importance of fair competition and reciprocity,' he added.
Neither Berlin nor the CCTV report explicitly mentioned U.S. tariffs.
Beijing earlier this month urged Germany not to undermine cooperation in the name of de-risking, a strategy by Europe to reduce its dependence on China trade.
The European Union, of which Germany is the biggest economic power, and China are also at
odds over Chinese electric vehicles.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
an hour ago
- Barnama
China, US Agree On Plan To Ease Trade Tensions After Talks In London
WORLD ISTANBUL, June 11 (Bernama-Anadolu) -- China and the United States (US) have agreed on a framework and implementation plan after two days of trade talks in the UK, China's top trade envoy Li Chenggang said late Tuesday, Anadolu Ajansi reported. 'The two sides agreed, in principle, on the framework for implementing the consensus of the two heads of state in their firm call on the 5th of June, as well as the consensus of the meeting in Geneva,' Li told journalists in London. He said both sides would report back to their leaders on the talks and the framework reached in the UK. Li said the Chinese and US teams worked 'very diligently' and had 'very in-depth exchanges' over the past few days, adding that their communication was 'very professional, rational, in-depth and candid.' He expressed hope that the progress in the talks would be 'conducive to increasing trust' between the two countries, to promote stable trade and economic relations, and contribute positively to global economic development. A new round of trade talks between the US and China aiming to reach a deal started on Monday in London. The talks were expected to revolve around China's restrictions on exports of rare earths to the US and Washington's restrictions on some tech exports to China, as well as the dispute over tariffs. The meeting followed US President Donald Trump's phone conversation with Chinese President Xi Jinping last week, with Trump saying later that the conversation "resulted in a very positive conclusion for both countries." The two sides are aiming to build on a 12th May deal struck in Geneva, when they agreed to a 90-day suspension of most duties and to roll back measures imposed since early April after Trump announced "reciprocal" tariffs on US trading partners.
The Star
2 hours ago
- The Star
Serbia's President Aleksandar Vucic makes first-ever visit to Ukraine
FILE PHOTO: Serbian President Aleksandar Vucic arrives for the European Political Community Summit at Skanderbeg Square in Tirana, Albania, May 16, 2025. REUTERS/Valdrin Xhemaj/File Photo KYIV (Reuters) -Serbia's populist President Aleksandar Vucic travelled to the Ukrainian city of Odesa for a regional summit on Wednesday, the first time the Moscow-friendly leader has visited the country during his 12 years in power. In a statement, Vucic's office said he would travel to Ukraine for one day to take part in the Ukraine-Southeastern Europe Summit in the Black Sea port of Odesa, which this week faced a major Russian drone and missile attack. Senior politicians from 12 Southeastern European nations were expected to take part in the summit. Serbia wants to join the European Union, but Russia, a traditional Slavic and Orthodox Christian ally, remains its biggest gas supplier, and the country's sole oil refinery is majority-owned by Gazprom and Gazprom Neft. Although Belgrade has refused to join Western sanctions on Russia over its invasion of Ukraine, it has condemned Moscow's policies in the United Nations and expressed support for Ukraine's territorial integrity. Vucic has also previously met Ukrainian President Volodymyr Zelenskiy at least three times. Belgrade recognises Ukraine in its entirety, including territories seized by Russia since 2014, while Kyiv refused to recognise the 2008 independence of Kosovo, Serbia's predominantly Albanian former southern province. In late May, the SVR, the Russian foreign intelligence service, accused Belgrade of "a stab in the back", alleging Serbia's defence manufacturers were selling ammunition and weapons to Ukraine via intermediaries. The only Serbian president to visit Ukraine since the Balkan country became independent in 2006 was Boris Tadic in 2011. Ukraine's previous president, Petro Poroshenko, visited Serbia in 2018. (Reporting by Aleksandar Vasovic; Editing by Alex Richardson)
The Sun
2 hours ago
- The Sun
Dollar losing ground, but euro fails to gain: ECB study
FRANKFURT: The dollar continued to lose market share last year as the world's dominant currency but mostly smaller rivals and gold benefited rather than the euro, which aspires to fill any void left by receding confidence in the greenback, an ECB report showed. Investors have sold off dollar assets since April because of erratic U.S. economic policy and ECB President Christine Lagarde said this was an opportunity for the euro to become the dollar's alternative, provided the 20-nation bloc would finally push ahead with key integration steps. But figures predating this most recent turmoil suggest that the euro is not becoming more popular, and besides the Japanese yen, non-traditional currencies may be benefiting. In 2024 alone, the dollar lost 2 percentage points in its share in global foreign exchange holdings and while the euro made small gains, the yen and the Canadian dollar were the big winners, the ECB said on Wednesday. Although the dollar still has a 58% market share in global foreign exchange reserves, this is down by 10 percentage points in the past decade. Meanwhile, the euro's share has hovered just below 20%. Another big winner last year was gold, with central banks increasing their stock by more than 1,000 tonnes, a record pace and double the annual level seen in the previous decade, the ECB said. 'Survey data suggest that two-thirds of central banks invested in gold for purposes of diversification, while two-fifths did so as protection against geopolitical risk,' the ECB said. When all foreign reserves are added together, gold at 20% accounted for a bigger share than the euro, which stood at 16%, the ECB added. However, there have been some signs since April that euro assets may finally be benefiting. U.S. yields have increased but the dollar has weakened sharply against the euro, a highly unusual correlation, which appears to suggest that investors are questioning the dollar's status as the world's premier asset. These market moves indicate that investors are demanding a higher risk premium to hold U.S. assets and remain uncertain about debt sustainability given Washington's fiscal path. There has also been a steady stream of U.S. firms issuing debt in euros, often called reverse Yankee Bonds, and the euro did increase its share last year in foreign currency-denominated bond issuance. The euro zone, however, lacks critical financial infrastructure to take meaningful share from the dollar, economists warn. It lacks a truly liquid, large-scale safe asset since debt is issued by each country, leaving the bloc's debt market fragmented. Its banking system is also fragmented and the EU lacks a capital market union with harmonised rules and large, cross-border players. Moreover, Europe also lacks military defence capabilities to provide the sort of geopolitical assurance reserve managers demand.
