The Indo-Pacific region is a key region in terms of maritime geopolitics, security, trade and environmental issues. With China’s rise, increasing tensions over territorial claims and the region’s strategic importance, several European countries, including Germany and France, have implemented comprehensive policies.
The Republic of Korea (ROK, or South Korea), a technologically advanced nation, is internationally famous for its export of semiconductors, cars and pop culture. In the past few years, South Korea has also successfully grown its defence industry, securing major deals abroad. Emerging as one of the world’s fastest-growing defence exporters, South Korea ascended from the 31st position in 2000 to a top ten ranking between 2019 and 2023 in the global arms trade, taking many by surprise, especially in Europe.
German carmakers Volkswagen (VW), BMW and Mercedes-Benz are increasing their presence and Foreign Direct Investments in China, which is showing new investment patterns. The Chinese Electrical Vehicle (EV) expertise and technology, together with the country’s large market, could help the European automotive industry to retain global competitiveness and further its electrification process. In this context, the EU should place the European automotive industry’s interests at the centre of its green transition. Apart from the growing political scepticism and potential competition, economic collaboration with Chinese companies and the need for a broader understanding of the Chinese market as well as related strategies will become increasingly important in the long term.
On 19 June 2023 all attention turned to the Hamburg harbour in Germany, where the terminal operator “Hamburg Haven and Logistics AG” finalised a significant deal with the Chinese ports operator “Cosco Shipping Ports Limited.” This deal, involving the acquisition of a stake in one of the container terminals, had encountered controversy and public- and political opposition, resulting in a subsequent reduction from the initial 35% stake to a 24.9% for Cosco. The Hamburg harbour case study provides valuable insights into the intricate landscape of international investments and geopolitical considerations. This op-ed will provide a nuanced account of the case study, delving into the key actors, the rationale behind the investment as well as the German federal government’s decision to limit the stake, and tracing the origins of the backlash it faced.
On 13 July 2023 Germany released its first-ever China Strategy, of which its inception has been driven by the new geopolitical equilibrium between Berlin and Beijing. China, Germany’s largest trading partner, has become a more assertive actor at the global stage and “as a result of this, we need to change our approach” Foreign Minister Annalena Baerbock declared at the presentation of the long-awaited paper.
With the official election of Olaf Scholz as the new German Chancellor by the newly constituted parliament (the Bundestag) on 8 December 2021, the 16-year-long era of Angela Merkel as head of the German government came to an end. Along with Merkel’s farewell ended the governing role of her conservative party, the Christian Democratic Union (CDU), after achieving a record low of voter shares in the September 2021 parliamentary elections.