The way that Germany allowed itself to become dependent on Russian (natural) gas is now widely seen as a massive geopolitical blunder.
The way that Germany allowed itself to become dependent on Russian (natural) gas is now widely seen as a massive geopolitical blunder.
What is sometimes forgotten is that Germany (or, in this case, its export sector) is also unhealthily dependent on another country that is, to say the least, no friend of the West.
Volkswagen AG Chief Executive Officer Oliver Blume will travel to China next month as part of the automaker’s push to preserve its share of the world’s largest car market, according to people familiar with the plans.
Blume will join a high-ranking German delegation led by Chancellor Olaf Scholz on a trip planned around Nov. 4, the people said, asking not to be identified because the plans are private…
For the German government, the trip is a delicate balancing act to discuss business interests and human rights violations, Bloomberg reported last week. Berlin is working to hone a new national strategy on China that aims to ensure less reliance on the world’s second-largest economy, diversify supply chains and enhance security.
Siemens AG CEO Roland Busch also will join the delegation, Frankfurter Allgemeine Zeitung reported late Friday.
Somehow, I think that the Germans will manage that “delicate balancing act.” This is, after all, the country that moved ahead with the Nord Stream 2 pipeline after the first Russian invasion of Ukraine.
The inclusion of Siemens CEO Roland Busch is also a sign of how that balancing act will play out.
In a comment back in January, I noted this story about Busch, which appeared in the Spectator. The background was China’s use of forced labor:
[Siemens CEO] Busch though, is not such a fan of calls to divest from such supply chains on the grounds that — wait for it — an EU ban on forced labour could slow down its green transition which relies on imports of Xinjiang’s solar power panels.
Responding to [ comments by (Green) foreign minister, Annalena Baerbock about the need to take a tougher line on Chinese human rights violations] on Friday, the £5.8 million-a-year executive said that mistakes in China ‘cannot be resolved through a confrontational foreign policy,’ adding ‘If export bans are issued, these could mean that we can no longer buy solar cells from China — then the energy transition will come to an end at this point.’
The phrase “greenwashing” has come to mean companies presenting themselves as being more environmentally friendly than they really are. Another use might be a willingness to turn a blind eye to, say, genocide, forced labor, and child labor so long as it is in the interests of the “climate.”
And I seem to remember being told only recently that the “energy transition” was going to lessen the West’s dependence on unfriendly, authoritarian regimes. Oh well.
Back to Bloomberg:
VW operates several vehicle and components factories in China along with partners. Last week, the company said it will invest €2.4 billion ($2.4 billion) to set up an autonomous driving joint venture with China’s Horizon Robotics Inc. to strengthen its tech presence in the country.
What could go wrong?
In a completely unconnected story, Politico’s Hans von der Burchard tweets:
In what sounds like a swipe against U.S. push for decoupling from China, Scholz said in Brussels that he wants to maintain close trade ties with Beijing “The EU prides itself on being a union interested in global trade and it does not side with those who promote deglobalization”.