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POLITICS

Scholz walks tightrope on trade and politics in China

German Chancellor Olaf Scholz arrived in China on Sunday, kicking off a trip in which he faces a tough balancing act as he aims to shore up economic ties with Berlin's biggest trading partner.

Scholz walks tightrope on trade and politics in China
German Chancellor Olaf Scholz arrives in China Sunday. Photo: Tobias SCHWARZ/AFP.

Scholz touched down in the southwestern megacity of Chongqing on Sunday morning, Chinese state broadcaster CCTV said, accompanied by a large delegation of ministers and business executives.

As Western allies are cranking up pressure on Beijing, Scholz is expected to underline that Germany remains committed to doing business with the world’s second-largest economy and rejects US-led calls for “decoupling”.

His friendly overtures towards China risk sparking ire among Washington and EU partners, which have been pushing back against Beijing’s heavy subsidies for industries.

“China remains a really important economic partner,” Scholz told journalists on Friday, adding that he would try to level the playing field for German companies in China.

On the geopolitical front, Scholz will also use his visit to persuade Chinese President Xi Jinping to exert his influence to rein in his Russian counterpart Vladimir Putin and help bring an end to the war in Ukraine.

“Given the close relations between China and Russia, Beijing has the possibility to exert its influence on Russia,” said a German government source in Berlin.

The three-day tour through Chongqing, Shanghai and Beijing is Scholz’s second trip to China since he took office.

His first in November 2022 took place under intense scrutiny, as it came swiftly after Xi strengthened his grip on power, and marked the first post-pandemic visit by a G7 leader to China.

Stung then by painful supply chain disruptions during the health crisis as well as by China’s refusal to distance itself from Russia despite Moscow’s invasion of Ukraine, Western allies had been scrambling to reduce their reliance on Beijing.

‘Position of strength’

Scholz’s visit comes as many of Germany’s Western allies confront China on a range of trade issues.

A slew of probes into state aid for Chinese solar panels, electric cars and wind turbines are ongoing in Brussels.

The United States is meanwhile investigating national security risks posed by Chinese technology in cars.

With tensions rumbling over Taiwan, US President Joe Biden this week made defence pledges to Japan and the Philippines, while describing behaviour by Beijing in the South China Sea as “dangerous and aggressive”.

Two days before his visit, Scholz held talks with France’s President Emmanuel Macron, whose office said the leaders “coordinated to defend a rebalancing of European-Chinese trade relations”.

But China is a vital market for Germany, where many jobs depend directly on demand from the Asian giant.

Both economies also badly need a boost.

The German economy shrank by 0.3 percent last year, battered by inflation, high interest rates and cooling exports, and for this year, the economy ministry expects just an anaemic growth of 0.2 percent.

Beijing has set an annual GDP growth target of around five percent for this year, but exports plunged more than expected last month.

German MPs and analysts urged Scholz to take a firm line. The Green party’s Deborah Duering warned Scholz against viewing China just as an economic opportunity.

“Those who ignore long-term risks for short-term profits risk repeating the mistakes of the past, misguided Russia policy,” said Duering, in reference to past dependency on Moscow for cheap energy supplies.

Max Zenglein of the Mercator Institute for China Studies said Germany should not hesitate to be more assertive.

“As countries such as the USA and Japan are positioning themselves much more sharply against China, Germany has an important role to play,” he said, adding that Germany was “in a position of strength”.

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CRIME

German far-right politician fined €13,000 for using Nazi slogan

A German court has convicted one of the country's most controversial far-right politicians, Björn Höcke, of deliberately using a banned Nazi slogan at a rally.

German far-right politician fined €13,000 for using Nazi slogan

The court fined Höcke, 52, of the far-right AfD party, €13,000 for using the phrase “Alles fuer Deutschland” (“Everything for Germany”) during a 2021 campaign rally.

Once a motto of the so-called Sturmabteilung paramilitary group that played a key role in Adolf Hitler’s rise to power, the phrase is illegal in modern-day Germany, along with the Nazi salute and other slogans and symbols from that era.

The former high school history teacher claimed not to have been aware that the phrase had been used by the Nazis, telling the court he was “completely not guilty”.

Höcke said he thought the phrase was an “everyday saying”.

But prosecutors argued that Höcke used the phrase in full knowledge of its “origin and meaning”.

They had sought a six-month suspended sentence plus two years’ probation, and a payment of €10,000 to a charitable organisation.

Writing on X, formerly Twitter, after the trial, Höcke said the “ability to dissent is in jeopardy”.

“If this verdict stands, free speech will be dead in Germany,” he added.

Höcke, the leader of the AfD in Thuringia, is gunning to become Germany’s first far-right state premier when the state holds regional elections in September.

With the court ordering only a fine rather than a jail term, the verdict is not thought to threaten his candidacy at the elections.

‘AfD scandals’

The trial is one of several controversies the AfD is battling ahead of European Parliament elections in June and regional elections in the autumn in Thuringia, Brandenburg and Saxony.

Founded in 2013, the anti-Islam and anti-immigration AfD saw a surge in popularity last year – its 10th anniversary – seizing on concerns over rising migration, high inflation and a stumbling economy.

But its support has wavered since the start of 2024, as it contends with scandals including allegations that senior party members were paid to spread pro-Russian views on a Moscow-financed news website.

Considered an extremist by German intelligence services, Höcke is one of the AfD’s most controversial personalities.

He has called Berlin’s Holocaust monument a “memorial of shame” and urged a “180-degree shift” in the country’s culture of remembrance.

Höcke was convicted of using the banned slogan at an election rally in Merseburg in the state of Saxony-Anhalt in the run-up to Germany’s 2021 federal election.

READ ALSO: How worried should Germany be about the far-right AfD after mass deportation scandal?

He had also been due to stand trial on a second charge of shouting “Everything for…” and inciting the audience to reply “Germany” at an AfD meeting in Thuringia in December.

However, the court decided to separate the proceedings for the second charge, announced earlier this month, because the defence had not had enough time to prepare.

Prosecutor Benedikt Bernzen on Friday underlined the reach of Höcke’s statement, saying that a video of it had been clicked on 21,000 times on the Facebook page of AfD Sachsen-Anhalt alone.

Höcke’s defence lawyer Philip Müller argued the rally was an “insignificant campaign event” and that the offending statement was only brought to the public’s notice by the trial.

Germany’s domestic security agency has labelled the AfD in Thuringia a “confirmed” extremist organisation, along with the party’s regional branches in Saxony and Saxony-Anhalt.

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