German Economy Minister Katherina Reiche stressed the importance of reliable access to critical raw materials and rare earths during a visit to China on Wednesday, as Berlin and Beijing seek to deepen economic ties despite growing trade tensions.
Following talks with Zhou Haibing, vice minister at China's powerful National Development and Reform Commission, and Commerce Minister Wang Wentao, Reiche said critical resources had been on the agenda.
The German minister said the discussions had involved exploring ways to “create [supply] channels that our companies can rely on."
German companies need access to critical minerals and rare earth elements, “because the modern world and modern technologies would be inconceivable without these raw materials," Reiche said.
As a result of a trade dispute with the United States, China introduced export licences for seven rare earth elements and magnets made from them.
This has caused a major headache for European companies, many of which heavily rely on China to supply the resources.
Reiche's trip comes as Germany and China attempt to revive economic dialogue following German Chancellor Friedrich Merz's trip to Asia earlier this year. At the same time, the relationship remains strained by trade imbalances, complaints over unfair competition and debate within the European Union over tougher protective measures.
Touching on the possibility that the EU could move to better protect its interests, Reiche said that, as an exporting nation, Germany has two main interests.
On the one hand, unfair competition must be countered with appropriate measures, she said. On the other, German companies must continue to be able to export their goods, according to the minister.
“We are therefore advocating in Brussels for a balanced approach - effective trade protective measures coupled with openness to exports,” said Reiche.
China remains Germany's largest trading partner, although Germany imports significantly more goods from China than it exports there.
According to Germany's Federal Statistical Office, bilateral trade volume exceeded €250 billion ($291 billion) last year. Imports from China rose 8.8% to €170.6 billion, while German exports to China fell 9.7% to €81.3 billion.
During her visit, Reiche was also scheduled to meet Vice Premier He Lifeng, who shares responsibility for trade issues in the Chinese government.
A delegation of German business executives is accompanying the minister, including BASF chief executive Markus Kamieth and Thyssenkrupp boss Miguel Ángel López Borrego.
On Thursday, Reiche is due to visit companies and local government representatives in the southern industrial hub of Guangzhou.
