Germany must clear the ‘values diplomacy’ fog in its China policy

German Foreign Minister Johann Wadephul will visit China from December 8 to 9. Reports indicate the trip will focus on issues such as China-EU economic and trade relations. After several twists, this visit is finally taking place - and that in itself is a significant signal. It reflects not only the subtle shifts in China-Germany relations but also the difficult journey of the bilateral relationship as it navigates a complicated international landscape.

Berlin urgently needs to step out of the fog of "values diplomacy" and return to a reality-based track. In recent years, some European politicians have waved the banner of "values diplomacy," framing relations with China as a matter of "systemic rivalry" or a "clash of values." Germany's China policy has gradually been reshaped into a form of "strategic competition" infused with strong ideological overtones, and China-Germany ties have been forcefully pushed into a "systemic competitor" framework crafted by certain Western think-tank narratives. In fact, once values are "weaponized" and used as tools to exert pressure in the international arena, they lose their very essence - no longer functioning as moral principles that shape shared human ideals and guide conscious action, but instead degenerating into mere instruments of power politics.

The direct consequence of this type of "values diplomacy" is that trade and economic frictions - issues that could have been resolved through negotiation - are repeatedly overlaid with ideological filters, making them far more complex and difficult to resolve. The postponement and subsequent resumption of the German foreign minister's visit to China essentially reflect a repeated oscillation between value-based narratives and real interests. The more "values" are used as tools, the more likely it is that harms will be caused by those tools - diplomatic space narrows, industrial interests are sacrificed, and ultimately the price is paid by the national economy and ordinary citizens.

Some in Germany relish discussing "de-risking," but abandoning cooperation with China is the biggest risk of all. For Germany, soaring energy prices and rising costs of the green transition have already squeezed industrial competitiveness. If further "de-risking" against China is pursued in raw materials, components, and end markets, it will make an already fragile industrial and supply chain even more vulnerable, and Germany's and Europe's "economic security" even harder to safeguard. German research institutes and media outlets have repeatedly warned in recent months that mishandling relations with China could push German industry into a state of permanent "crowding out."

In this sense, Germany's "crisis" appears, on the surface, to be one of trade structure and energy structure. But at a deeper level, it is a crisis of perception - a deviation in how some in Berlin understand the outside world. Over-reliance on abstract "value narratives," while ignoring the long-established patterns of industrial division of labor and the practical operational logic of enterprises in the global market, can easily lead to a speculative approach in China's policy. This approach is characterized by a desire to share in the Chinese market and benefit from cooperation while simultaneously trying to create distance in discourse. The longer this pendulum swings, the greater the loss of policy credibility, the stronger the uncertainty for enterprises, and the more the strategic stability and development potential of Germany itself are harmed.

The real foundation of China-Germany cooperation is far more solid than the labels used in discourse. China has been an important trade partner for Germany for many consecutive years, with imports of German goods reaching approximately $95 billion in 2024, primarily in the automotive and machinery sectors. In the same period, Germany's imports from China are even larger, making bilateral trade a crucial part of the global industrial chain.

There is also tremendous potential for cooperation between China and Germany in areas such as green transformation, digital upgrades, and aging society governance. China has a complete industrial system and a rapidly expanding green market, while Germany has advantages in high-end equipment, energy conservation and emission reduction, and industrial software. Cooperation between the two countries can create a virtuous interaction of "technology plus market" in new sectors such as electric vehicles, new energy, hydrogen energy, and intelligent manufacturing, creating more development opportunities for both sides and even global economy.

For Germany, the core value that must be upheld is to return to the correct path of quickly avoiding recession and enhancing the welfare of its people. Germany has long embodied its social values through a well-developed welfare system and a high level of public services, all of which rely on a stable tax base, a strong real economy, and sustainable fiscal balance. If the economy falls into prolonged stagnation and fiscal space continues to be squeezed, it will inevitably require cuts in areas such as education, healthcare, infrastructure, and social security, leading to cracks in the original "value proposition."

The question is whether Germany is willing to be a "rational great power" with stability and responsibility, or a "speculative nation" caught in the tug-of-war between value rhetoric and real interests. China is paying attention, and the world is paying even more attention. For China, the direction has always been clear: to adhere to mutual benefit and win-win cooperation, to maintain open collaboration, and to promote a higher level of opening-up to provide more development opportunities for all countries, including Germany, making cooperation rather than confrontation the main theme of this era.