BERLIN — German Economy Minister Peter Altmaier defended Berlin’s refusal to take a tougher line on China’s crackdown in Hong Kong, saying those in favor of a more strident response were ignoring the economic consequences of confronting Beijing.
Critics argue that Berlin is following a cynical course by closing its eyes to human rights abuses in order to preserve German jobs and prosperity — especially in the auto industry, the core of the German economy.
Altmaier rejected that in an interview with POLITICO, arguing that economic engagement would lay the groundwork for change in the world's rising superpower. “We often have to deal with difficult partners and have to talk even more in difficult times,” Altmaier said. “We have trade relations with many regions across the globe, including in many cases countries that have a different understanding of civil rights than we have in Germany.”
Altmaier, who previously served as Chancellor Angela Merkel’s chief of staff and remains a confidante, said this strategy — known in German as Wandel durch Handel (change through trade) — had worked with the former Soviet Union and remained at the core of Germany’s approach to difficult regimes across the Middle East, Africa and Asia.
“I have always been convinced and I still believe that change can be achieved through trade,” Altmaier said, adding that it would be too risky to pursue a confrontational course that had no guarantee of success.
In 2016, China overtook the U.S. to become Berlin's largest trading partner. And last year, Germany exported goods worth €96 billion to the country.
Though Altmaier insisted that “protecting human rights as well as contract compliance are the basis for good economic relations,” both he and the German government have faced harsh criticism at home and abroad for what some consider its toothless approach toward China.
Merkel’s government has remained largely silent over Beijing’s decision last month to introduce its new security law, suspending the personal liberties long enjoyed by the people of Hong Kong. In contrast, the U.S. and U.K. have threatened China with severe consequences over the move, which effectively ends the “one country two systems” policy. Enshrined in the Sino-British Joint Declaration which governed the handover of the territory from Britain to China in 1997, Beijing had committed to granting Hong Kong a high degree of autonomy, including extra democratic rights for its citizens.
Asked whether he could be sure China would respect any agreements negotiated with the EU, given it seemed to have broken the treaty with Britain, Altmaier said that "it is a prerequisite for all trade relations that you stick to agreements."
"Of course, the quality and the future of the relationship also depends on the fact that all parties involved adhere to valid agreements that have been concluded," he said.
Berlin’s China policy is even controversial among Merkel’s own Christian Democrats (CDU), however. Norbert Röttgen, the chairman of the German foreign affairs committee and a candidate to become the CDU’s next leader, has called China’s move a clear “violation of international law” and called on Germany and the EU to condemn it. The opposition Greens have also demanded that Merkel speak out against Beijing's moves in Hong Kong.
Yet even if such calls get louder, Merkel is unlikely to budge, given the importance of Germany’s economic relationship with China. In fact, Altmaier made clear that Germany was eager to further deepen those ties, stressing that an investment protection agreement between the EU and China was in Germany's foremost interest.
Brussels is currently negotiating such a deal with Beijing, with the aim of granting EU investors better protection in China. Germany wants to conclude the agreement by the end of the year, but Altmaier stressed that "the European Union will not conclude an investment agreement at any price."
For the EU to agree to the deal, "it also has to take our trade policy ideas very much into account. This includes a level playing field, which means equal access to the respective markets," Altmaier said, but he made clear Berlin would not give up on the agreement over human rights concerns.
Indeed, Germany's main worry with China's new national security law seems to be the effect it will have on its businesses, rather than on free speech. Asked whether he was worried about the law's extraterritorial scope, which in theory targets criticism of China even abroad, Altmaier said he wanted to make sure this would not affect German companies.
"I have already decided that I will soon hold a videoconference with representatives of German companies in Hong Kong to ensure that employees of these companies do not suffer from these events," he said in reference to the new law.
"And by this I mean not only German citizens but also employees of German companies, regardless of their nationality."
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