German vice-chancellor advocates de-risking in China relations during India visit
Robert Habeck
German Vice-Chancellor Robert Habeck, currently on a three-day visit to India, has emphasised the complexities of Germany's partnership with China.
Speaking to the media on the sidelines of India Germany business forum, he addressed the challenges posed by China being Germany's largest trading partner and highlighted the risks associated with over-reliance on a single market, particularly when economic interests intertwine with political concerns.
"Partnership with China is a complicated one," stated Dr Habeck, acknowledging the substantial investments made by German and European companies in the Chinese market.
However, he also stressed the importance of diversification to mitigate risks, stating, "We can't decouple from China, and nobody wants that, but de-risking, diversification is of the highest importance."
Dr Habeck expressed optimism about enhancing collaboration and investments between Germany and India, stating, "There's a mutual interest from the German side, from the Indian side to strengthen our cooperation, creating a common trait."
The German vice-chancellor strongly condemned "Russian aggression on Ukraine", and called it an "unprecedented" event that has disrupted the peace order built in Europe after World War II.
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Dr Habeck urged all democracies worldwide to take a clear and resolute political position, explaining, "This is not acceptable. In no way, this is acceptable."
As a response to Russia's actions, Germany and other European nations have imposed sanctions and provided military support to Ukraine.
Dr Habeck clarified that the sanction system allows for the purchase of crude oil but with a price cap, ensuring that it does not directly benefit Russia's war efforts. He emphasised, "The idea is not to make money out of it, bringing more money to Russia using this sanction system to benefit from it."
The German vice-chancellor, who is also the Minister of Economic Affairs and Climate Action will meet Indian Trade Minister Piyush Goyal, EAM S Jaishankar. He will also participate in the G20 Energy Ministers meeting in Goa.
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