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1. German-Chinese Forum

by Dr. Peter Hefele

The German-Chinese Relationship after the Formation of the New Governments

With a new "German-Chinese Forum" KAS Shanghai created a new platform to discuss current topics of politics, economy and society of bilateral interest in Germany and China. The platform was set up in cooperation with the Germany Research Center of Tongji University in Shanghai and the Center for Global Studies at the University of Bonn.

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The German Bundestag elections in 2013 and the change of state and party leadership in China, provide an opportunity to debate the future of the bilateral relationship between Germany and China.

How does the new government formation affect the relationship between the two countries? What regional and global responsibilities have the two leading export powers? How will the perception of each other change?

In his opening speech Dr. Wolfgang Röhr, Consul General of the Federal Republic of Germany in Shanghai, highlighted the good relations between Germany and China. Nevertheless, he expressed his concerns about the respect for human rights or current territorial disputes with the neighboring states. As a "country in the center" China could learn from Germany, dealing with its past and reconciliation with their neighbors. Mr. Röhr expressed concerns also on the relationship between China and Japan because the constellation of a strong China and Japan is a new experience for Asia and the world.

The first Panel dealt with Germany's role and responsibility for the future of Europe: Implications for Sino-European relations and the global challenges for China and Germany.

How the new coalition agreement could affect the future for germanys foreign policy, was analyzed by Professor Xuewu GU, director of the Center for Global Studies and Chair of International Relations at the University of Bonn. He explained the two pillars of German foreign policy: transatlantic partnership with the United States and European integration. He also emphazised four new accents in the coalition agreement: 1) A careful delimiting and regaining of trust with the United States; 2) A stable and reliable relationship with Russia; 3) European integration with Germany as a strong power and catious enlargement of the EU; 4 ) Strategic Partnership with Japan and China. Toward China improvements in human rights, the protection for intellectual property and a stronger commitment for international conflicts are expected.

ProfessorCUI Hongjian, Director of the Department of European Studies of the China Institute of International Studies in Beijing, presented China and Germany as economic powers, which are reluctant, if not even unwilling to contribute to resolve international conflicts. For China the path of an active contribution to a solution of international conflicts is not easy: if China actively engages in international affairs, it would be seen as a threat; if it does do nothing, then everybody would critizes them. Therefore China prefers a "middle" way of getting involved, but not actively intervening.

The European and global agenda for Germany's foreign policy analyzed Professor Tilman Mayer, Institute for Political Science and Sociology at the University of Bonn. Further deepening of European centralization, the stabilization of the euro and the enlargement of the EU are among the most challenging foreign policy issues in Germany. He critised the communitarisation of debts by Euro Bonds, but argued for an improved relationship with the United Kingdom and new ways of integration of countries at the periphery of the EU; as well as an extension of the economic area, for example, to Asia. Too often, the EU is bound by its internal problems and lack of international influence. A unanimous opinion within the EU about China does not exist. However, at the trade relations there is still a high potential in sino-european relations.

Dr. Lirong LIU, Institute of International Studies at Fudan University in Shanghai, analyzed the German and EU China policy and noted that many different decision levels and institutions in European foreign policy make a unified policy towards China almost impossible. This is especially woeful as China is both an opportunity and a challenge for the EU.

Comments by Lai WEI, a journalist with the Global Times in Beijing, and Professor Sebastian Bersick, Fudan University Shanghai, summarized the results of the first panel. They expressed their disappointment with the reluctant foreign policy of Germany and the fact, that only a small number of parliamentarians in Germany and in the EU are interested in China and Asia.

The second fanel of the Forum examined the economic relations between Germany and China.

Prof. Dr. CHEN Xin, China Academy of Social Sciences Beijing, analyzed the structure of the trade surplus between Germany and China. He revealed that China is still very dependent on German technology imports, but the trade structure is increasingly becoming complementary. He also stated that the economic restructuring of the Chinese economy - a core project of the new leadership in Beijing - will go in hand with an increase of the proportion of the value added in China.

Ms. Dr. Schüler-Zhou, German Institute for Global Affairs Hamburg, pointed on the tendency of an increase in intra-industry trade between China and Germany, leading to an increased competition between China and Germany. She drew the attention to the significant increase of the direct investment in Chinese investments in Germany.

Prof. DING Chun, Fudan University Shanghai, gave an overview of the economic and social transformation of China with the dramatic change in processes of market development, the integration of China into the world, the process of urbanization and the transformation from an rural to an industrialized nation. He also pointed out the challenges posed by the rising income inequality, demographic change and an unsustainable economic system.

In his commentary, Prof. XU Mingqi, Shanghai Academy of Social Sciences (SASS), pointed out that many companies have expanded their production chain in China and new chances that there would be more access in the technological field. Foreign companies should not worry about copyright violations. With an increase of value added in China's production, foreign companies would benefit, too.

CHEN Haiying, Structure Management Partner GmbH, mainly commented on the market conditions for foreign small and medium-sized enterprises (SMEs). He predicts these kind of companies facing difficulties due to an incorrect positioning in rapidly changing markets in China.

The third panel shet light on the people-to-people relations between China and Germany as an important issue of foreign cultural policy, the mutual perception in the media and new channels of people-to-people exchanges.

Prof. TIAN Dewen, Chinese Academy of Social Sciences, explained dimensions of cultural influence to the outside and pointed to tradition-based differences in the social order between China and Germany. For the dialogue between companies, a mechanism should be designed to build mutual understanding and trust in order to solve problems.

Andreas Landwehr, dpa in Beijing, highlighted that the growing international importance of China has drawn more global attention on its domestic and international actions. He rebutted the often complains that German media would stimulate a negative image of China. However, he revealed that China needs more transparency to achieve the desired reforms for the public.

Dr. HU ChunChun, Germany Research Center of Tongji University and former director of the Confucius Institute Hannover, spoke about the Confucius Institute from the perpective of German foreign cultural policy. He noticed reluctance in Germany towards the work of Confucius Institutes.

In her comment, Ms. Prof. WU Huiping, Tongji University, reflected on problems of mutual cultural understanding and media perception. According to her understanding this is based on popular perception that the international role of China is solely based on interests. At the level of "public diplomacy" the problem of how Chinese values can be combined with universal ones is still unsolved.

Ms. Katja Hellkötter, Constellations Shanghai, presented new ideas on how to deepen cultural exchange. The exchange on people-to-people level provides the opportunity to combine cultural exchange with social issues, i.e a growing number of "social/cultural entrepreneurs".

The Forum will be a continued next year.

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