China and Germany agreed to expand mutual market access based on a level playing field and strengthen cooperation in the fiscal and financial areas after resuming high-level talks in Frankfurt on Sunday.
Chinese Vice Premier He Lifeng and German Minister of Finance Christian Lindner co-chaired the 3rd China-Germany High Level Financial Dialogue and reached consensus on 25 topics, according to a joint statement released by China’s Ministry of Finance.
The statement demonstrated both countries’ commitment to advancing strong and sustainable growth of the global economy.
China and Germany will work together with other G20 members to support the G20 debt restructuring framework for poorer countries, and will strengthen comprehensive cooperation under the framework of the Asian Infrastructure Investment Bank.
The two sides also agreed to further strengthen regulatory cooperation in the banking and insurance sectors, and to communicate on signing a memorandum of understanding on insurance supervision between the respective regulators. China welcomes qualified German insurance companies to apply for operating licenses in their specialized areas, said the statement.
Meanwhile, both sides will support German financial institutions’ conducting renminbi (RMB) business, and the lifting of bilateral restrictions and possible obstacles for cross-border transaction
Deutsche Borse Group expressed its support for the meeting’s outcomes, saying the bank welcomes German business entities to actively participate in the Chinese interbank market, including investing in RMB bonds, using RMB bonds as collateral, and participating in the Chinese interbank foreign exchange market.
China wants more openness and less China-bashing from Germany and Europe
The talks came at a time when the German government plans to “de-risk” its relationship with China by reducing its reliance on Chinese products.
Germany’s Interior Ministry is planning to force local telecoms operators to rid their use of components made by China’s Huawei and ZTE by 2026, Reuters reported.
The European Commission also launched an anti-subsidy probe last month into China’s electric vehicle exports.
However, China-German electric vehicle cooperation has “bucked the trend”, as China has signed letters of intent to cooperate with three German automotive heavyweights in June in a bid to further promote cooperation in the automotive sector of the two nations.
Germany’s Volkswagen recently bought nearly five percent stake of Chinese electric vehicle maker XPeng for $700 million, as the company needs Chinese technology to meet the needs of the Chinese market.
Last week, China’s ambassador to Germany Wu Ken urged Germany and Europe to show more openness to Chinese electric vehicles and 5G technology, and have deeper cooperation in such areas.
Wu said in his speech that China understood German concerns but the “fear of change and competition should not lead us to stray from the path (of cooperation) or erect barriers”
(With input from Reuters)