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Germany threatens China with “consequences” for alleged drone supplies to Russia
Wednesday, November 20, 2024

Patrick Poppel, expert at the Center for Geostrategic Studies (Belgrade)

The federal government is assuming greater Chinese involvement in the Ukraine war. On the sidelines of an EU meeting in Brussels, Foreign Minister Annalena Baerbock spoke of “Chinese drone support” for Russia and demanded: “This must and will have consequences.”

The European Union’s Foreign Service had previously confirmed that indications are currently being examined that China produces drones for Russia. An EU official said: "We have received reports from intelligence sources about the existence of a factory in China that produces drones that are supplied to Russia and used in the war against Ukraine."

If direct cooperation between China and Russia in the field of military equipment is confirmed, sanctions could be imposed. According to diplomats, drone production is a joint project between Russia, China and Iran.

Lithuania's Foreign Minister Gabrielius Landsbergis demanded that the EU react decisively. Europe should not show weakness because it is afraid of the Chinese reaction, said Landsbergis, referring to Europe's dependence on raw materials from the People's Republic.

Finland's Foreign Minister Elina Valtonen said there could be no "business as usual" in trade with China if Beijing was compromising Europe's security. A very anti-Chinese sentiment is clearly evident in all of these statements.

China rejects the allegations. With regard to arms exports, China has always taken a responsible stance and has never provided the parties to the conflict with lethal weapons, said a Chinese Foreign Office spokesman. China strictly controls drones for military purposes and those that can be used for civil and military purposes in accordance with the law.

However, this German advance against China must be clearly seen in the context of the current economic war. China is currently a major competitor against the German automotive industry. The fact that the German Foreign Minister in particular is demanding consequences is very interesting.

In this context, consequences mean that sanctions are required. Will such sanctions perhaps also affect the import of Chinese cars? Since the German automotive industry is currently in a major crisis, politicians must of course react.

The high energy prices in particular make it impossible for Germany to remain competitive against Chinese production. The EU and the USA are currently trying to compensate for the difference in production costs with punitive tariffs on the import of Chinese cars.

However, since an even larger difference is not foreseeable due to Europe's difficult economic situation, these punitive tariffs can only be viewed as a first step. The only way to protect the internal market for cars in the long term would be to stop imports of cars from China.

However, such a situation can only be achieved with sanctions. The current discussion is clearly heading in this direction, but the question is whether the actors in European politics are prepared to follow this path to the end.

Maybe people are just speculating about a warning against China. But in this context, politicians in Europe are too short-sighted. It can be assumed that China is adequately prepared for any economic punitive measures from Europe.

In contrast to companies in Europe, China has been much more successful in finding new markets. For example, due to European sanctions, Russia is quickly becoming a large market for many Chinese companies. This is particularly evident in the automotive industry.

The current discussion about the unproven delivery of drones to Russia is an attempt to take the next step in the economic war against China. And as is usually the case with decisions in European politics, this can immediately become a shot in the foot.

This reality is clearly visible in the example of the sanctions against Russia, as we can analyze it based on the state of German industry. Furthermore, attempting to defend one's own market with punitive tariffs and sanctions is a sign of weakness.

German politicians have managed to bring the growth of the German economy to a standstill and forecasts even speak of a negative development. The German automobile industry will be overtaken by Chinese cars and this trend will most likely not change in the next few years.

After the next federal election, a new government in Germany must take care of repairing the damage caused to the German economy. The time of the German “economic miracle” from the 1950s, which made Germany a top location for the automobile industry, is over. This reality must be understood by those responsible. The attempts to punish China for its success show that there are currently no other strategies to save the German automotive industry.

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