London Daily

Focus on the big picture.
Saturday, Mar 07, 2026

Olaf Scholz won’t dump China. Will Europe ever learn?

Olaf Scholz won’t dump China. Will Europe ever learn?

As Xi Jinping embarks on another five-year term, fears grow that Germany is repeating the mistake it made by getting too close to Russia.

It was early fall, 1959. A senior official from Mao’s China was leading a mission to Kyiv, then part of the Soviet Union. He inspected factories, learned about state planning, and took an afternoon boat trip on the Dnipro River with his 30-plus comrades. It’s nothing like the Ukraine his son has to deal with today.

Xi Zhongxun, father of the current Chinese President Xi Jinping, led the visit. As secretary-general of the State Council, the government arm of the Communist Party, Xi the senior spent a total of four days in what is now Ukraine’s capital. The trip also took him to Moscow and Prague, and apparently left a mark on the boy who would one day run the only powerful Communist Party left standing on earth.

“He would later tell Russian sinologists that, even though he was merely six at the time, he remembered how warmly his father spoke of his trip to the USSR and the many photos his father had taken," said Joseph Torigian, a scholar at American University who dug up old newspaper clippings about Xi’s trip in Moscow’s Lenin Library.

As Xi junior, now president-for-life, embarks on a landmark third term in office this week, Europe is gearing up for choppy waters ahead. From the race for tech supremacy to potential armed conflicts between Beijing and Washington, Europe has little cause to celebrate the dominance of China's most powerful leader since Mao.

Indeed, the mood has shifted so dramatically that European leaders last week raised the alarm over the strategic threat China poses to the West. Gone is whatever goodwill there used to be on climate collaboration or trade.

"Under the leadership of Xi, Europe’s relationship with China has deteriorated,” said Janka Oertel, Asia director at the European Council on Foreign Relations. "With Xi, China changed – not Europe. But Europeans are now adjusting to the new reality.”

In part, Europe’s awakening is a response to China’s brutal acts of domestic repression, its regional assertiveness and aggressive diplomacy. These have all alienated Western policymakers, Oertel said.

But more than anything, it is China's strategic alliance with Russia — amid Vladimir Putin's war in Ukraine — that has driven an urgent rethink in EU capitals. While Beijing has not provided Russia with military assistance, tacit economic and political support is clear.

One theory for Xi’s reluctance to condemn Putin over Ukraine is China’s own ambitions to bring Taiwan — a democratic island of 23 million — under Beijing’s direct control.

“Are we moving in a downward spiral?” Germany’s Ambassador to the EU Michael Clauss, formerly Berlin’s top envoy to Beijing, said last week. “Much will depend on China’s next steps especially when it comes to dealing with Russia and Taiwan.”

Xi's plans for Taiwan might have gone unnoticed had the man he once called his best friend, Putin, not woken up Europe with a brutal invasion of Ukraine. The sheer scale of the eight packages of EU sanctions on Russia saw an unimaginable level of near-total decoupling for Europe since the end of the Cold War, even if those measures pose a direct, negative impact on the European economy.

Xi keeps talking about peaceful reunification as a preferred option in his latest remarks on Taiwan, including during the Congress. In reality, the scope for peace is smaller than ever.

Chinese President Xi Jinping and French President Emmanuel Macron meet in Beijing, 2019


Beijing's military put on a fierce display of prowess in the wake of U.S. House Speaker Nancy Pelosi's visit to Taipei, launching ballistic missiles that flew over Taiwan's capital while carrying out live-fire exercises around the island in what felt like a rehearsal for a future invasion.

In boardrooms, international conferences and government meetings nowadays, Taiwan has become the inevitable question facing European businesses and policymakers. How soon will China wage a war? How will Europe react economically? What about all the businesses they have with the world's second largest economy? And how about the most advanced microchips they have predominantly sourced from Taiwan?

"I think that our failed European policy [on] Russia is making many of us in the room to rethink about our approach to China,” Lithuania's Foreign Minister Gabrielius Landsbergis told POLITICO, referring to the attitude among his fellow EU peers. "Fool me once, that’s on me. Fool me twice? That’s the other way.” Countries do not want to find themselves again regretting that they took an “authoritarian power for granted.”

In Brussels, officials are encouraging EU governments to pursue broader economic engagement with Taiwan. At the same time, the EU is also telling capitals to cut their dependency on the advanced semiconductors that Taiwan specialises in making. Nearly 90 percent of the most advanced chips Europe consumes come from Taiwan Semiconductor Manufacturing Company (TSMC).


Berlin goes solo


As much as Brussels may wish for European unity in the face of turbulence with China, Berlin, at least, still prefers to do things its own way. Indeed, Xi’s instinct has been to turn to Germany when he needed Europe on his side. That was at least until Angela Merkel left her top job as chancellor.

Berlin’s current coalition is so far sending confusing messages on how it plans to handle relations with Xi. German Chancellor Olaf Scholz is planning a trip to China early November, bringing with him a business delegation just months after he used a trip to Japan to highlight the need for businesses to diversify away from Beijing.

He's also expected to overrule six of his ministries to approve a contentious deal by China's state-run shipping giant to acquire a minority share of one of the ports in Hamburg, where he used to be a mayor.

Scholz’s approach has raised eyebrows in Brussels, where last week he flatly told his EU counterparts there should be no “decoupling” from Beijing.

It’s not a view universally held in Berlin, after the Ukraine war exposed the folly of relying on energy links with Putin's Russia.

In a recent interview with Süddeutsche Zeitung, Scholz’s coalition partner, Foreign Minister Annalena Baerbock attacked businesses for building up their dependency on China. “Complete economic dependence based on the principle of hope makes us politically blackmailable,” she said.

“The task of a responsible economy — and even more so of politics — is not to allow us to get back into a situation where in a few years’ time, [we] have to save the chemical and auto companies with billions in taxes, because they have made themselves dependent on the Chinese market, for better or worse.”

In private, she is equally straightforward. During one of her earlier conversations with Chinese Foreign Minister Wang Yi, he was praising how popular the Chinese president was, citing opinion polls. It’s a tactic he’d been using for years, in a way to belittle the “less” popular leaders in Western democracies. Most listeners usually smiled politely but Baerbock hit back.

According to "No Limits", an upcoming book by Andrew Small, Baerbock replied that her constituency in East Germany used to return similar numbers back in its Soviet days. Xi’s father would no doubt have agreed.

Newsletter

Related Articles

0:00
0:00
Close
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
×