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China’s Xi urges Ukraine peace talks with Germany’s Scholz

by Index Investing News
November 4, 2022
in World
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BEIJING — In a much-scrutinized meeting Friday with visiting German Chancellor Olaf Scholz, Chinese President Xi Jinping called for peace talks between Russia and Ukraine and warned against the conflict going nuclear.

The German leader is in Beijing for a one-day visit that has drawn criticism over China’s tacit support for Russia, lingering controversies over economic ties and human rights issues. It comes after Xi further cemented his authoritarian rule at a major Communist Party congress last month.

Scholz’s visit reflects the importance of Germany’s trade ties with China, the world’s second-largest economy, particularly in the auto and manufacturing sectors. Mercedes Benz alone sold 758,863 cars in China last year, more than in any other country, according to company figures.

Scholz, who is traveling with several top German business leaders, received a formal welcome from Xi, who was recently reappointed head of the ruling Communist Party, at the Great Hall of the People in the heart of Beijing.

Xi noted that Scholz’s visit comes as the two countries mark more than 50 years of diplomatic relations dating back to when they relaunched economic exchanges, despite their Cold War rivalry, that remain a key part of the relationship to this day.

“At present, the international situation is complex and changeable,” Xi was quoted as saying by state broadcaster CCTV. “As influential powers, China and Germany should work together in times of change and chaos to make more contributions to world peace and development.”

On Ukraine, Xi “pointed out that China supports Germany and the EU in playing an important role in promoting peace talks and promoting the building of a balanced, effective and sustainable European security framework,” CCTV reported.

The international community should “call on all parties concerned to exercise rationality and restraint, conduct direct contacts as soon as possible, and create conditions for the resumption of negotiations (and) jointly oppose the use or threat of use of nuclear weapons,” Xi said.

Without offering evidence, Russian leader Vladimir Putin has repeated Moscow’s unproven allegation that Ukraine is plotting a false-flag attack involving a radioactive dirty bomb that it would try to pin on Russia.

Ukraine has strongly rejected the allegation, and its Western allies have dismissed it as “transparently false.” Ukraine argued that Russia might be making the allegation to serve as a cover for its own possible plot to detonate a dirty bomb.

Scholz is the first leader from the Group of Seven leading industrialized nations to meet with Xi since the start of the COVID-19 pandemic, which was first detected in China in 2019, and the first European leader to visit China since Russia’s invasion of Ukraine, which Germany has strongly opposed.

The diplomatically delicate trip comes as Germany and the European Union work on their strategy toward an increasingly assertive and authoritarian Beijing.

Beijing has provided Moscow with diplomatic backing by repeatedly calling for peace talks while refusing to support measures at the United Nations criticizing Russia’s invasion. It has also accused the U.S. and NATO of provoking the attack and scathingly criticized economic sanctions imposed on Russia.

In his opening remarks, Scholz referred directly to the conflict that has created millions of refugees and upended world food and energy markets, saying, “We come together at a time of great tension,” according to German news agency DPA.

“In particular, I want to highlight the Russian war against Ukraine, which poses many problems for our rules-based world order,” it quoted Scholz as saying.

Scholz also touched on global hunger, climate change and developing world debt as important issues, DPA reported.

Scholz, who relies on a coalition of his Social Democratic Party, the Greens and the Free Democratic Party, has come under criticism for making the visit to China so soon after Xi’s triumph at last month’s congress, at which he was named to a third five-year term and packed the all-powerful Politburo Standing Committee with allies who support his vision of tighter control over society and the economy and a more confrontational approach to the West.

The visit is also occurring amid rising tensions over Taiwan and follows a U.N. report that said Chinese human rights violations against Uyghurs and other ethnic groups in its Xinjiang region may amount to crimes against humanity.

Scholz is accompanied on the trip by about a dozen top German business leaders, including the CEOs of Volkswagen, BMW, BASF, Bayer and Deutsche Bank, most of which are doing a thriving business in China. Scholz will also meet company representatives in Beijing.

That has some German observers questioning whether the country is becoming overly reliant on the Chinese market, just as it did with Russia for energy supplies.

Following lunch, Scholz and his delegation were to meet with Premier Li Keqiang, who nominally has responsibility over China’s economy.

In an article for the German daily Frankfurter Allgemeine Zeitung, Scholz said he was traveling to Beijing “precisely because business as usual is not an option in this situation.”

“It is clear that if China changes, the way we deal with China must also change,” Scholz said, adding that “we will reduce one-sided dependencies in the spirit of smart diversification.” Scholz also said he would address “difficult issues” such as the rights of ethnic minorities in Xinjiang.

Scholz’s messages will face close scrutiny, particularly at home where some have criticized him for normalizing China’s behavior. While his nearly year-old government has signaled a departure from predecessor Angela Merkel’s firmly trade-first approach, his trip follows domestic discord over a Chinese shipping company’s major investment in a container terminal in Germany’s crucial port of Hamburg.

With China still imposing tough COVID-19 restrictions, his delegation is moving in an anti-virus bubble, undergoing testing and won’t stay in Beijing overnight. At just 11 hours, it is the shortest trip ever to China by a German leader. The aircrew who brought him to Beijing flew to South Korea to wait out the visit and avoid having to be quarantined.

German officials say the trip is intended to probe where China is going and what forms of cooperation are possible.

An official pointed to China’s “particular responsibility” as an ally of Russia to help end the war in Ukraine and press Moscow to tone down its nuclear rhetoric; to concerns over tensions in Taiwan and the broader region; to Germany’s desire for a “level playing field” in economic relations; and to Scholz’s current status as this year’s chair of the G-7.



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Tags: ChinasGermanysPeaceScholzTalksUkraineUrges
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