German Chancellor Olaf Scholz urged the European Union to respond with measured resolve to the evolving dynamic with China. He framed the situation as a pressure test for unity and strategy, where competition from Beijing will only intensify, but complete disengagement is neither practical nor desirable for Europe’s security and prosperity.
Scholz outlined a nuanced relationship with China, describing the trio of labels that Europeans use to articulate their stance: a systemic partner, a competitor, and a counterpart with whom cooperation remains essential. Speaking before the European Parliament in Strasbourg on Europe Day, he highlighted how the balance between engagement and rivalry with China has grown sharper in recent times, calling it a trend that demands vigilance and thoughtful policy responses.
He added that the EU must not only observe this evolution but actively shape it. Scholz supported the European strategy against China recently championed by Ursula von der Leyen, the president of the European Commission, emphasizing the need to manage risk while preserving avenues for constructive interaction. The aim, he noted, is to deter threats and ensure that Beijing cannot force strategic concessions, yet the bloc should not cut itself off from opportunities that come with a China that remains a vital trade and investment partner.
Scholz argued that Europe should present a confident, outward-facing stance that invites cooperation with the Global South and other partners, recognizing their concerns and legitimate interests. He framed such outreach as a cornerstone of a more inclusive geopolitical Europe, one that seeks to build a broad, just framework for global trade and security that reflects the realities of a multipolar world.
The German leader approved a forward-looking approach that could see the EU strengthen ties with Mercosur, Mexico, India, Indonesia, Australia, Kenya, and other potential partners. He stressed that future agreements should be fair, designed to foster mutual growth, and anchored in shared norms and transparent rules. In his view, collaboration should expand economic opportunities without constraining the partners’ own development paths.
A key principle he highlighted is that value should be added where the work is done. For instance, initial processing of raw materials should occur within the partner regions, rather than being redirected to operations in China or elsewhere. This, Scholz asserted, would promote domestic value creation and fair competition, contributing to sustainable economic development across partner economies while maintaining a balanced global supply chain.
Scholz also stressed that Europe’s strategic posture must be practical and principled, combining openness with prudent safeguards to protect critical interests. By pursuing fair trade and resilient partnerships, the EU can bolster its own economic resilience while supporting the growth and stability of its partners. The aim is a stable, rules-based order where economic interests align with democratic values and human rights expectations, ensuring that cooperation with China does not come at the expense of Europe’s core principles and security concerns.
Overall, the German chancellor underscored a vision of Europe that acts with confidence on the world stage. The path forward involves a careful calibration of competition and collaboration, a commitment to open markets where they produce real value, and a readiness to adjust policies as the international landscape evolves. In this framework, Europe would engage with Beijing, while strengthening its own strategic autonomy and seeking partnerships that promote shared prosperity and prudent risk management, always with an eye toward the broader, evolving balance of global power. [citation: Reuters]