When eagle and dragon work together

Updated: 2015-06-12 06:39

By Michael Clauss(China Daily Europe)

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The world needs Germany and China to help strengthen a cooperative international order

The fall of the Berlin Wall and the end of the Cold War in 1990 ushered in a huge new wave of globalization.

Looking back after 25 years, we can now see that this development produced a number of clear winners. China is definitely among them: It started off with GDP the size of Belgium's. Now its economy is three times the size of Germany's.

China has overtaken us as the world's biggest exporter. Germany has also gained enormously. First of all, it gained freedom, peace and security. But it has also seen new economic opportunities, not least in China, and has made good use of them. Our trade with China is twice the size of China's trade with Russia and several times the size of China's trade with any other European country.

The influence of China and Germany in the world rests decisively on our economic strength, but does not stop at that. When the world looks at the two countries, there are parallels that are striking - despite our very different political systems and historical and cultural backgrounds.

When eagle and dragon work together

When the world looks at us, it sees two behemoths of manufacturing and huge exports, two countries that drew a lot of their strength from their hard-working population, a strong emphasis on educational merit, and two cultures that value saving for the future and long-term planning over a "buy now, pay later" mentality.

There is no doubt that the global order is changing dramatically and that China, in particular, plays a crucial part in this process. Both Germany and China have enormous gains to defend in this changing world order. We are very different, but our interests overlap strongly. In the coming years, we should seize opportunities to create a new quality in our relations to go even beyond our thriving comprehensive strategic partnership.

The following areas are key:

Strengthen the global order

One of the main challenges of the coming years is to make sure that all responsible nations are embedded in one world order and do not drift away into their separate universes. With this in mind, Germany supports fixing institutions lagging behind political and economic realities (such as the International Monetary Fund and the United Nations Security Council) and takes an open and constructive approach toward new institutions and initiatives. Our decision to join the Asian Infrastructure Investment Bank, as the most important non-Asian member, was driven by this motivation.

Other initiatives worth exploring for deeper cooperation include the Shanghai Cooperation Organization, an intergovernmental body founded by China, Russia and four Central Asian states; the BRICS Bank created by Brazil, Russia, India, China and South Africa; and China's One Belt, One Road Initiative, designed to use trade and investment to boost ties along ancient trade routes and elsewhere.

Germany is willing to work with China in its endeavor to advance an inclusive architecture that spans Europe and Asia. It will be important to build this architecture with Russia, not around or without it. The Organization for Security and Co-operation in Europe should also play an important part. It is the only relevant organization that includes North America, Europe and Asia.

Cooperate to maintain and enhance the strength of our economies

Stronger services sectors and stronger internal consumption will be important to create a better balance in our economies. However, it is important that we do not throw the baby out with the bathwater. Both Germany and China must maintain a leading edge in manufacturing to maintain prosperity, not least in order to generate sufficient resources for social justice.

Germany has been working on the next industrial revolution, named Industry 4.0, which involves marrying manufacturing to the digital world. This is a huge challenge that goes far beyond technological development. It will bring a systemic change to our economy and perhaps even society. Industry 4.0 is also a key component in China's Made in China 2025 plan. No countries other than Germany and China are better matched economically, technologically, mentally and even politically to work together in this field.

Getting to know each other better

Let's face reality: There are still important areas where China and the West do not see eye to eye. The best way to overcome distrust and misconceptions is giving as many people as possible the opportunity to go and see the reality in our countries. Growing numbers of Chinese tourists, businesspeople and students in Germany are a hopeful sign. However, there are signs of stagnation when we look at traffic from Western countries to China.

We urgently need to increase the flow of people in both directions. One important bottleneck is visa procedures on both sides. Most importantly, visa procedures should convey that Chinese visitors, students, businesspeople and, yes, those wishing to work in Europe are welcome - and vice-versa. Concrete improvements in the process are important, and real: Most European countries, including Germany, have shortened application procedures.

What we need even more is a different mindset on both sides. We must recognize that Europe and China are no security threat to each other and have basically no issues with illegal immigration. This is a rare opportunity for enhanced exchange and collaboration in our increasingly volatile world. It should not be squandered.

The author is German ambassador to China. The views do not necessarily reflect those of China Daily.

(China Daily European Weekly 06/12/2015 page10)