Olaf Scholz advocates for fair competition in China

During his visit to China on Monday, German Chancellor Olaf Scholz spoke for free and open markets, cautioning his Chinese counterparts against dumping and overproduction and urging the European Union to refrain from acting in its own protectionist interests.

Scholz’s visit to China, together with a number of prominent German businessmen and three ministers, is being closely observed for clues about how Europe may adjust its reaction to what it perceives to be Chinese products being dumped on its market.

Scholz’s three-day journey to China is his first since his government adopted a “de-risking” approach last year to try to keep Germany from becoming too dependent on the second-biggest economy in the world.

Iran’s strike on Israel over the weekend, which heightened worries of a larger regional confrontation, has overshadowed the trip.

Along with other Western leaders, Scholz issued a warning to Iran not to conduct any more attacks and urged Israel to assist in reducing tensions. China is anticipated to put pressure on Berlin to oppose the impending European Union actions on Chinese automobiles, solar park equipment, and wind turbines.