• China is an important partner in all fields
• But relationship has now become more complex
• We do not want to separate from China
• But being too dependent on one country is a problem

Considering the current fragile state of Germany’s manufacturing sector, it’s not the best time to strain relations with China. That said, China could also do with some help as their own economy has been in limbo since the pandemic. Habeck’s remarks are ones to echo the recent G7 statement but that is something China has grown accustomed to already. At the end of the day, actions speak louder than words.

This article was written by Justin Low at www.forexlive.com.