China's pursuit of economic self-sufficiency must not create one-sided dependence in other markets, German President Frank-Walter Steinmeier urged in an address at Peking University in Beijing on Thursday, according to the text of his speech, Reuters reported. Steinmeier is in China on a state visit and will meet Chinese President Xi Jinping on Friday.

Source: Reuters

"It is understandable that China wants to protect its economy against external shocks and negative influences," Steinmeier said, but he pressed that China's greater independence must not lead to the dependence and vulnerability of others on China. "We do not want a new bloc confrontation. That would not only be dangerous for international security, but would also be an economic loss for everyone," he said.

The speech set out Europe's core complaints: European companies have found themselves with little or no access to the Chinese market, while European markets face large volumes of state-subsidised Chinese imports as well as Beijing's controls and limits on its raw-material exports, Steinmeier said. The European Union has called its widening trade deficit with China unsustainable and warned last month that it will use every possible means to remedy it. Germany, along with France, has also proposed that the EU enact a new rapid-action measure against countries that harm it, with China likely in focus, Reuters reported.

The German news agency dpa reported ahead of the speech that Steinmeier would use his state visit to argue for fair economic and trade relations that benefit both sides, and that imbalances must be reduced, according to the Federal President's office. After Thursday's keynote address at the University of Peking, he is due to discuss the issues on Friday with Xi Jinping and Premier Li Qiang. Dpa also reported that, in Steinmeier's view, China's rise to world-power status must come with greater responsibility — including using its good relations with Russia to press for an end to the war in Ukraine.

Source: dpa (via Ariva)

Steinmeier argued that Europe is determined to keep its industrial base, and said he was confident that Brussels and Beijing would be able to find solutions through dialogue. His five-day visit runs until Saturday, Reuters reported.