European business leader cautions against economic consequences of decoupling from China: Reuters

(People's Daily Online) 14:59, June 08, 2023

Belen Garijio, the CEO of the German technology group Merck KGaA, has warned that severing trade ties with China would come at great economic cost, stressing the importance of dialogue in easing tensions between China and western powers, Reuters reported.

Gorijio made the remark on Monday during a journalist club event in Frankfurt. The backdrop for her comments is the increasing calls from U.S. and German lawmakers to reduce trade dependency on China.

"Dependencies between the powers were huge,” said Gorijio. “When I hear politicians say we have to decouple, I don't think this is feasible."

"We are risking a global world that has brought wellbeing, more innovation, more collaboration,” said Gorijio.

Despite the headwinds of decoupling, Merck’s finance chief announced last month that the company plans to invest further in China. Merck aims to establish domestic supply chains in China to mitigate the risk of disruptions in the import of key raw materials during any trade disputes, the Reuters report said.

Merck KGaA, a German pharmaceutical company specializing in lab equipment and semiconductor chemicals, has been present in China for nearly 90 years. According to the report, last year China accounted for 3.2 billion euros ($3.4 billion) of 22.2 billion euros in group sales, with products including bioreactor gear as well as chemicals for making microchips and flat screens.

(Web editor: Wu Chaolan, Wu Chengliang)


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