London Daily

Focus on the big picture.
Sunday, Aug 16, 2026

The stark US-German differences on China

The stark US-German differences on China

The transatlantic partners split on the nature of the country under Xi, and the extent of economic partnership with Beijing.
There’s a growing risk that the United States and Germany are headed for a collision over China.

Both countries recognize China has changed and that a new approach toward Beijing is required, of course, but the differences between their approaches were recently underscored by the talks their leaders had with Chinese President Xi Jinping.

Chancellor Olaf Scholz flew halfway across the world, with a retinue of leading German business leaders in tow, for an 11-hour visit on Xi’s home turf. He wasn’t the first Western leader to land in Beijing since the onset of COVID-19, but he was the first to meet with the Chinese president since his total consolidation of power at the Communist Party’s Congress.

By contrast, U.S. President Joe Biden met with Xi on the margins of the G20 summit, arriving on the tailwinds of a strong electoral showing in the midterms and the publication of his National Security Strategy — which emphasized the centrality of strategic competition with China — while showing the determination to discuss how to prevent the growing competition between their two countries from descending into open conflict.

Of course, the substantive outcome of the two meetings wasn’t dissimilar — both Scholz and Biden focused on Taiwan, human rights, market access and Russia’s war on Ukraine. Importantly, Scholz convinced Xi to publicly confirm they “jointly oppose the use of, or threats to use, nuclear weapons” — a direct rebuke of Russia’s saber-rattling throughout months of war.

Yet, when it comes to China, there are stark differences between the the U.S. and Germany, and notably between Scholz and Biden. And these concern three core issues — the nature of China under Xi, the drivers of global politics and the extent of economic partnership with China.

Scholz recognizes that China under Xi has changed, but it’s not clear whether he truly understands how much Xi has changed China and its ambitions. Writing in these pages, Scholz noted that after the Party Congress’ avowed display of Marxism-Leninism, the “quest for national security — synonymous with the stability of the communist system — and national autonomy will be more significant going forward.”

But it won’t just be more significant — the power of the communist party and system over China is at the very core of Xi’s unrivaled rule. China under Xi is no longer a country that aims to grow economically and bring hundreds of millions of its people out of poverty, nor is it still satisfied to follow Deng Xiaoping’s dictum that China “hide its strengths, bide its time.”

Rather, it is a country seeking to overhaul the international system. As former Australian Prime Minister Kevin Rudd observes, China’s president wants an international system “anchored in Chinese rather than American power and one that reflects norms more consistent with Marxist-Leninist values” rather than Western values.

This is also Biden’s view. His National Security Strategy states that the People’s Republic of China is “the only competitor with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do it.”

These different points of view on Xi’s ambitions for China are also compounded by Scholz and Biden’s diverging views on what drives international politics today. For Scholz, the central force of change in global politics is the emergence of “new centers of power . . . in a multipolar world.” And Germany’s goal is to build partnerships with all these powers to deal with the globe’s growing challenges.

Biden doesn’t deny the prevalence of these global challenges, such as climate change and pandemics or the need to find ways of cooperating with others — including competitors like China — in order to better respond to them. But his view of today’s world isn’t of a multipolar one. Instead, he sees a China determined to overhaul the rules-based international order that has benefited countries around the world for decades — not least the leading Western powers in North America, Europe and Asia. That’s why he believes strategic competition is now the driving force of international politics.

These distinct worldviews also explain the two leaders’ disagreement over the nature of economic relations with China. Both agree that trade in nonessential goods makes sense, so long as economic dependencies are avoided, and they support diversifying markets beyond China. Where they differ is on the centrality of China’s market to their economic prospects.

Scholz insists that “China remains an important business and trading partner for Germany and Europe — we don’t want to decouple from it.” And in bringing a large business delegation with him, the chancellor highlighted that seeking economic opportunities in China remains a core goal, not just of German business but of the German government.

But today’s reality, so brutally underscored by Russia’s war on Ukraine, is that the interests of German business aren’t necessarily the same as those of the German government. Ending reliance on cheap Russian gas has dealt a blow to German competitiveness, but it was a strategic necessity.

Yet, when it comes to China, Scholz doesn’t appear to have learned that geopolitical lesson. Biden has.

To Biden, China is a strategic competitor. And while far from urging the U.S. economy’s complete decoupling from China, his administration insists on the overriding need to outcompete when it comes to sectors that undergird economic and military power — hence the decision to deprive China of access to any advanced U.S. semiconductor technology and knowledge.

Fortunately, more and more officials in Europe and, increasingly, in Germany now understand the need to shift away from the longstanding view of China as a gigantic market, seeing it instead as the strategic competitor it is. There are even loud voices within the German government urging a change — and we can only hope their voices will prevail.
Newsletter

Related Articles

0:00
0:00
Close
AI Manager at San Francisco Store Recommends Firing Human Employee
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
UK Prime Minister Andy Burnham Takes Regional Tour to Highlight Local Infrastructure and Environmental Problems
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
Bank of England Warns Rising Inflation Could Squeeze UK Household Incomes
UK Government Announces £65 Million Aid Package for Farmers Hit by Severe Drought
UK Economy Grows 0.4% in Second Quarter Despite Energy Market Pressures
UK Issues Emergency Alert as Severe Wildfires Spread Across England and Wales
UK and Finland Discuss European Defence and Continued Support for Ukraine
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
UK Government Deploys Military to Help Fight Wildfires and Bans Disposable Barbecues
UK Records Hottest Day of the Year as Fifth Summer Heatwave Peaks in Southern England
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
UK Small Businesses Face Continued Cash Flow and Tax Pressures
Greatham Marsh Restoration Restores Tidal Wetland in Hartlepool After More Than 200 Years
UK Health Regulator Urges University Students to Check Meningitis and Measles Vaccination Status
Mining Remediation Authority Completes Major Ground Stabilization Works in Scottish Community
UK Food Crime Investigators Seize 33 Tonnes of Illegal Food in Multi-Agency Operation
Technical Qualification Uptake Hits Record High as Advanced Mathematics Results Improve
UK Summer Temperatures on Course to Challenge Long-Standing Records, Met Office Says
UK Farmers Bring Forward Cereal Harvests as Drought Threatens Yields
Wildfires Surge Across England and Wales as Fire Chiefs Report Record July
UK Nurses Warn of Heat Risks as Hospital Staff Struggle With Extreme Temperatures
Southern Water Seeks Drought Order for Hampshire and Isle of Wight Amid Water Shortages
UK Heatwave Pushes West London Temperature to 38.1 Degrees as Health Alerts Continue
UK Economy Grows 0.4% in Second Quarter Despite Global Uncertainty
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
UK Residents Gather to Watch Rare Partial Solar Eclipse
Reform UK Deputy Leader Richard Tice Faces Criticism Over Legal Threat Against Guardian Journalist
Michael Forsyth Elected Speaker of the House of Lords
Cambridge Researchers Launch £20 Million Human Organoid Drug Testing Programme
Heathrow Loses European Passenger Traffic Lead to Istanbul Airport
Households Near New UK Electricity Pylons to Receive £250 Annual Energy Bill Discount
UK Government Estimates Zero-Hours Contract Ban Could Cost Employers Up to £3 Billion a Year
Robert Jenrick Leaves Conservatives for Reform UK in Major Parliamentary Defection
UK Police Chiefs Urge Government to Block Early Release of Andrew Harper Killers
UK Government Holds Emergency Cobra Meeting as Drought and Heatwave Raise Wildfire Risks
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
×