(Bloomberg) — China doesn’t respect the principles that Germany stands for and is a “systemic rival” to Europe’s biggest economy, according to Finance Minister Christian Lindner.
“We have to recognize that we have an enormous risk,” the Free Democrat leader and junior partner in Chancellor Olaf Scholz’s coalition said in a speech on Tuesday. “China doesn’t respect our social model, our understanding of liberality, our recognition of international law.”
Lindner is voicing his concerns at a sensitive time. On Friday, European Union officials will hold a video summit with President Xi Jinping where they may reinforce U.S. warnings that China would face serious consequences if it tried to cushion the blow of sanctions against Russia.
The bloc’s officials suspect China may be ready to supply semiconductors and other technology hardware to Russia, according to two people with knowledge of the EU’s internal assessments. While Lindner didn’t refer to the meeting, he did put stress on what the country represents to Germany.
“Our trade relationship with China is almost a concentration risk for our economy,” he said. “It may be a trading partner, but it’s also systemic rival.”
Lindner’s comments aren’t the first by a German official concerned at China’s influence. The previous government — led by Angela Merkel — started adopting more protectionist measures after China’s Midea Group Co. swallowed robot maker Kuka AG in 2016.
Two years later, her cabinet blocked a Chinese bid for the first time by vetoing the potential purchase of machine-tool manufacturer Leifeld Metal Spinning AG.
Lindner did try to put his comments in context, emphasizing that rivalry with China doesn’t mean more than that.
“Please don’t misunderstand me,” he said. “Despite all the risks I see in China, I don’t compare them to Russia in the current situation.”
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