During his opening remarks, Executive Vice Chairman and Director of the Executive Board of CCIEE, Zhang Xiaoqiang, elaborated on the biggest current challenges for the EU and China. Apart from fighting the coronavirus and protecting their citizens there should be a globally coordinated approach to dealing with the economic consequences of the pandemic. According to Zhang, protectionism and unilateralism shouldn’t be the answer to a global recession. Consequently, Dr. Peter Hefele, Head of the Asia and Pacific Department at KAS headquarters in Berlin, also emphasized during his opening speech that the decoupling of economies is not the solution to the current economic challenges. He also stressed that despite the necessity to focus on absorbing the economic consequences of the pandemic, previously pressing questions such as climate change, migration, the future of global trade and resource security shouldn’t be ignored.
During the following presentations and discussions, both, German and Chinese speakers, emphasized that the EU and China will play a central role in the recovery process of the global economy and trade and investments should be intensified. Claudia Barkowsky, Chief Representative China of the German Mechanical Engineering Industry Association (VDMA), and Stefan Gätzner, Chief Representative Greater China of the Federation of German Industries (BDI), however, pointed out that especially in the area of trade and investment a level playing field should be given and state intervention should be reduced to a minimum. Against this backdrop the participants agreed on the importance of the Comprehensive Agreement on Investment which the EU and China are currently negotiating on and which is on the agenda for the EU-China summit in Leipzig in September.
David Gregosz, coordinator for international economic policy at KAS headquarters, pointed out that the G20 should play a more active role in the corona crisis management as well. He also described the increasing undermining of multilateral institutions as a worrying trend. Germany and China should give strong support to such institutions like the WTO and WHO. Just like several other participants he furthermore viewed the increasing discussion in Germany about de-globalization as a point of concern, because it would have mainly negative consequences for an export nation like Germany.
The CCIEE experts identified support for the African continent in fighting the pandemic and the research and development of a vaccine as possible cooperation fields for the EU and China. Guo Yingfeng, Associate Research Fellow at CCIEE, furthermore argued in favour for a close cooperation between Germany and China in the area of high-speed trains, industry, vocational training as well as the finance and banking sector.
On the question of possible consequences of the pandemic on the phase one deal in the trade conflict between the US and China Zhang Xiaoqiang stated that both sides are still willing to stick to the agreement, but the economic ramifications of COVID-19 and the slump of the oil price have a huge impact on the for example on the Chinese commitment to import more US products.
During the webinar, both sides agreed that cooperation between the EU and China not only in fighting the pandemic, but also in strengthening and securing supply chains and therefore global economy are of utmost importance. Close exchange and the mutual understanding of each other’s position and approach to the solving of current health and economic issues are necessary and therefore such exchange formats are important, the participants concurred.