London Daily

Focus on the big picture.
Monday, Jun 29, 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
UK Launches New Measures to Improve Safety Standards in Night-Time Venues
UK Tightens Import Rules for Low-Value Parcels to Support Domestic Retailers
UK Launches £85 Million Obesity Care Programme Targeting Early Intervention Projects
UK Commits Up to $26 Million to Ebola Response in Democratic Republic of Congo
Security Industry Authority Flags Safety Failures in Night-Time Economy Inspections
Cambridge South Railway Station Opens After £250 Million Investment
UK Moves to Close Import Duty Loophole for Small Parcels by 2028
UK Invests £85 Million in Projects to Transform Obesity Care
Berkeley Group Warns London Housebuilding Falling Far Short of Demand
UK Council Tax Arrears Rise to £9.3 Billion Amid Ongoing Household Financial Strain
Markets Watch Political Transition as Andy Burnham Emerges as Labour Leadership Frontrunner
Extreme Heat Raises Long-Term Risks for UK Inflation and Productivity, Analysts Warn
UK Health Alerts Extended as Record June Heatwave Grips England
UK Parliament Faces High-Stakes Week of Spending, Security and Industrial Legislation
UK Repeals Vagrancy Act Ending Criminalisation of Rough Sleeping in England and Wales
GB News Pundit Charged With Fraud Over Alleged Conduct as Former Labour Adviser
Reform UK Gains Parliamentary Visibility in First Senedd Opposition Appearance
Metropolitan Police Arrest Man on Suspicion of Attempted Murder After London Car Incident
Ocado Chief Executive Tim Steiner Faces Scrutiny Over £100 Million Remuneration Package
British Chambers of Commerce Downgrades UK Growth Outlook to 0.9 Percent for 2026
Nottingham University Hospitals Maternity Failings Trigger Renewed Calls for Public Inquiry
Severe Heatwave Disrupts UK Transport Networks and Strains Public Services Across England
Labour Leadership Transition Raises Prospect of Andy Burnham Becoming UK Prime Minister
UK Government Confirms Further Medicine Price Concessions for Community Pharmacies in June
British Chambers of Commerce Calls for Public Procurement Reform to Boost Regional Growth
Thousands Mark Armed Forces Day Across the United Kingdom With National Parades and Flypasts
Man Arrested in Ealing on Suspicion of Attempted Murder After Vehicle Ramming Incident Injures Five
Cambridge South Station Opens With £250 Million Investment to Strengthen Life Sciences Corridor
UK Heat-Health Alerts Extended Across England as High Temperatures Persist
Thames Water and Energy Operators Warn of Peak Demand Risks During UK Heatwave
Government Conference Highlights Push for Evidence-Led Policy Across UK Public Sector
Insolvency Service Reports Improved Confidence in UK Insolvency System
Security Industry Authority Finds Widespread Safety Failures in UK Night-Time Economy
Nigel Farage Expands Anti-WHO Campaign Into United States With New Lobbying Structure
Home Secretary Seema Mahmood Unveils New Safe Routes Plan for Asylum Seekers
UK Government Warns of Peak Electricity and Water Pressure Amid Ongoing Heatwave
New Nuclear Plant in Wales Named Gwyndod Power Station as Energy Strategy Advances
UK Announces First Major Hydropower Projects in Four Decades to Expand Renewable Capacity
Thirteen Men Charged in Major UK Sexual Abuse Case as Investigation Continues
UK Launches Cross-Sector Climate Security Taskforce Linking Environment and National Security
UN Secretary-General António Guterres Calls for Urgent Global Methane Emissions Cuts in London
World Bank Approves $1 Billion UK-Backed Financing Package for Ukraine Recovery
UK Pledges Emergency Aid and Rescue Team Deployment to Earthquake-Hit Venezuela
Bank of England Holds Interest Rates at 3.75 Percent for Fourth Straight Meeting
Record-Breaking Heatwave Puts Strain on UK Health Services and Energy Networks
London Ambulance Service Sees Record Emergency Demand as Heatwave Intensifies
British Chambers of Commerce Warns of Prolonged Weak Investment Climate Through 2027
Bank of England Holds Interest Rates as Inflation Risks Persist
UK Construction Sector Faces One Percent Contraction Amid Cost and Investment Pressures
Former DUP Leader Sir Jeffrey Donaldson Convicted of Sexual Offences
×