Wadephul slams China's ‘Market-Distorting’ trade practices

During a visit with his Chinese counterpart, Wang Yi, German Foreign Minister Johann Wadephul (CDU) sharply criticized Beijing for "market-distorting practices." In particular, "unilateral and often opaque export restrictions" on rare earths are currently causing "great concern" for German companies, Wadephul said at a joint press conference with Wang on Thursday. The EU will "jointly oppose" China's practices.

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He and Wang had addressed the issue at their meeting. China and Germany were "on the path to finding sustainable solutions together." With regard to the Ukraine war and the close relations between China and Russia, Wadephul said that "restoring peace in Europe" was Germany's "core interest." He therefore emphasized to Wang how important it was that China "do everything possible" to prevent war-critical goods from "leaving the People's Republic and ultimately supporting this war." Germany was counting on "credible and concrete efforts" by China and its "significant influence, including on Russia," to end the conflict.

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Beijing could also play a "constructive role" in the conflict with Iran, Wadephul added. Chinese Foreign Minister Wang, for his part, said the dialogue with Wadephul was "comprehensive, open, and fact-oriented" and "highly constructive." Beijing and Berlin both agreed that they would "continue to respect" each other. 

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Wang explained China's export restrictions on rare earths by arguing that these are dual-use goods, that is, raw materials or products that can be used for both military and civilian purposes. Export restrictions are therefore "internationally common" and "also in the interest of world peace and stability." However, the "normal" needs of Germany and other European countries for rare earths can be met.

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The Chinese Foreign Minister visited Wadephul as part of the strategic dialogue between the two countries; it was his first trip to Germany since the change of government in Berlin. Wang met with Belgian Prime Minister Bart De Wever, EU Council President António Costa, and EU High Representative for Foreign Affairs Kaja Kallas in Brussels on Tuesday. Wang also plans to travel to Paris. China and the EU are important trading partners, but relations are strained.