China and Germany: Why the emerging special relationship matters for Europe?

The increase in trade between China and Germany during the last decade – and, in particular, in German exports to China – has exceeded all expectations. Based on the economic symbiosis between China and Germany, a 'special relationship' is now developing – just as Europe is beginning to develop a more strategic approach to China based on a clearer definition of the European Union’s common interests and how to pursue them. Against the background of the euro crisis, China increasingly seems to see Germany as the dominant player in Europe and one whose economic dependence on China and strategic preferences make it a preferred partner.

Germany’s instincts remain European, but officials are frustrated by the failure of their attempt to develop a common strategic European approach to China and do not feel they can wait any longer. Germany must not give up on Europe.

But the rest of Europe also urgently needs to help Germany to be a good European by developing a real 'strategic partnership' with China before it is too late. The EU should identify where Europe can help Germany in its relationship with China; empower the European External Action Service (EEAS) to co-ordinate a 'top-down' approach to China policy; and explore new formats for dealing with China.

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