Asian Summit Meetings
BERLIN/BRUSSELS (Own report) - At various summit meetings taking place over the next few days, Berlin and Brussels will be continuing to pursue their efforts to gain influence in Eastern Asia. The prospects of the German industry landing lucrative business deals with China has led the German government to initiate talks on a further expansion of business relations between the two countries. The People's Republic of China is attracting a record amount of German investments and will soon be importing more German products than even the United States. Berlin is simultaneously pursuing its efforts to enhance its position in the countries bordering on China. A new EU Free Trade Agreement with South Korea, to be signed tomorrow, October 6, should create new opportunities, particularly for German companies - at the expense of the Italian industry. The Beijing/Tokyo territorial dispute over a group of islands in the East China Sea, gives an idea of the escalation potential engendered in the West's encirclement of China. Tensions are also imminent between the EU and Myanmar. Berlin is trying to intensify pressure on Myanmar, which is of extraordinary geostrategic importance to China. Germany wants to include sharp criticism of the Myanmar government in the final declaration of the EU summit meeting with 19 Asian nations that is drawing to a close today.
Profitable
The meeting between the German Chancellor and the Chinese Prime Minister at the Asian-Europe Summit (ASEM),[1] which ends today and the EU-China Summit to begin tomorrow are focused on the expansion of economic relations to Asia, in general, and particularly to China. German companies are making a growing number of record investments in China. For example the Volkswagen factory in Shanghai is the largest automobile factory in the world. (german-foreign-policy.com reported.[2]) Even as a importer of German products, the People's Republic is also moving up the scale. During the first semester of 2010, German exports to China rose 55 percent reaching a value of 25.2 billion Euros, just under the 27 billion Euros in exports to the United States, which is stagnating at 5.9 percent of the total volume of German exports. Even with a weaker growth, Germany will soon be supplying China more goods than the USA.
Strategic Significance
The high significance Berlin places on the relations with China can be seen in its choice of an appointment last month. In the power struggle for the most important positions in the new European External Action Service (EAS), the German government was able to place one of its diplomats in the post of the EU ambassador to China, providing Germany "a position of strategic significance", according to the Ministry of Foreign Affairs.[3] Markus Ederer, the designated EU ambassador, directed the planning staff in the German Ministry of Foreign Affairs, after having held other prominent posts, for example as cabinet director of the special coordinator of the Stability Pact for South Eastern Europe. Ederer began his carrier in the German foreign intelligence as the manager of the Political/Economic Evaluation sub-section of the Federal Intelligence Service (BND).[4]
Ring Around China
Besides expanding its lucrative business relations with Beijing, Berlin is making a concerted effort to strengthen its standing in the countries surrounding the People's Republic of China - and is thereby taking part in the Western encirclement of China. The most recent initiative was the Free Trade Agreement between the EU and South Korea, to be signed at the EU-South Korea Summit tomorrow, which is supposed to be a strong stimulus to business relations. It will "give particularly German companies a boost in their business with Korea," business circles are predicting.[5] The agreement is supposed to increase the trade volume between the EU and South Korea by approximately 19 billion Euros. The automobile industries in Europe are divided in their opinions. Whereas the Italian FIAT Corporation fears significant losses to its South Korean rivals, German companies are hoping for new export successes. According to government circles, Seoul has agreed to not complicate German automobile exports with imposition of environmental standards.[6]
Military and Weaponry
Berlin is not only reinforcing its standing in Seoul through its expansion of business contacts, but also through its military cooperation and arms supplies. In January 2007, the German Minister of Defense, at the time, Franz Josef Jung, spoke with his South Korean counterpart about the two countries cooperating closer on military policy. In the meantime, this cooperation has begun. A delegation of the South Korean armed forces visited the German Army Office and the Leadership Academy of the Bundeswehr this past June. The arms trade cooperation is also booming. In 2003 and 2004, Seoul was still the third most important trading partner in combat equipment outside of NATO. In 2007 Seoul ranked sixth in the total list of all German weapons exports (NATO included) and in 2008, in first place - with export permits totaling more than 1.9 billion Euros. South Korea is buying not only submarines and naval equipment but spare parts for tanks and anti-aircraft missile systems.
Escalation Potential
The conflict between Tokyo and Beijing over a group of islands in the South China Sea, which led to a diplomatic éclat a few days ago and affected the EU-Asian Summit, drawing to a close today, gives an idea of the escalation potential developing along Chinese borders. Just this past July, US Secretary of State, Hillary Clinton, declared that a peaceful solution to the territorial conflicts in the South China Sea are within the "national interests" of the United States, thereby provoking a hefty protest from Beijing at this intrusion.[7] The controversies involve China, but for example also Viet Nam and the Philippines, which have claims on various groups of the islands. Observers warn that in the near future, the existing conflicts could escalate further. Through its military and arms cooperation, Berlin is involved with various East and Southeast Asian countries, including Japan [8] and Indonesia,[9] in other words on the side of China's potential adversaries.
The Next Conflict
The conflicts are not limited to the group of islands, but are developing also on the Southeast Asian mainland. In November, elections are scheduled in Myanmar, a country of great importance to China. The People's Republic seeks to import goods through Myanmar's ports, including energy resources. This is meant to reduce Beijing's dependence upon having to transport through the dangerous Indonesian straits, for example the Strait of Malacca.[10] Myanmar, being ruled by a military regime, provides Berlin and Brussels with an excuse to use the human rights situation in the country to exert pressure. Accordingly, the EU had adopted a formulation in the draft of the final declaration of the EU-Asian Summit calling on Myanmar to liberate all political prisoners. Such a clamorous demand, which, of course, Berlin never raises to cooperative dictators (Ethiopia for example - german-foreign-policy.com reported [11]) is aimed at strengthening its influence in Myanmar, to be able to constrain China - and complete its encirclement while simultaneously courting the business advantages of this economic power.
[1] ASEM is a forum of European and Asian nations. It is comprised of the 27 EU member states, the 10 Southeast Asian Alliance ASEAN member nations as well as China, Japan, South Korea, India, Pakistan and Mongolia and since the latest enlargement, it also includes Russia, New Zealand and Australia. ASEM is a rival to the United States. S. also Emanzipatorische Elemente
[2] see also Deutschland gegen China (II)
[3] Deutscher wird EU-Chefdiplomat in China; www.derwesten.de 15.09.2010
[4] Der neue Diplomatische Dienst; www.european-circle.de 01.10.2010
[5] IVAM und OAV stärken deutsche Unternehmen im Geschäft mit Korea; www.academics.de 30.09.2010
[6] EU besiegelt Abkommen mit Südkorea; www.zeit.de 16.09.2010
[7] Hillary Clinton Changes America's China Policy; www.forbes.com 28.07.2010
[8] see also Alte Freunde and Einkreisung
[9] see also Ankerland (II) and Subregional Arms Race
[10] see also Prestigious
[11] see also Aiding Dictators and Inherent Racist
