Merkel in China

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German Chancellor Angela Merkel’s second visit to Chinain a year comes against the backdrop of direforecasts of a difficult September for the eurozone. Mindful of such concernsand persistent pessimism in global financialmarkets, Merkel is now taking bold politicalinitiatives at home and overseas. Indeed, her China trip should be seen as aneffort to assert leadership across the eurozone.
At home, Merkel recently sent out a clear message to hercritics that Germanymust pay a price for eurozone leadership. She cautioned her colleagues against loose talk about a “Grexit” – Greece’s exit from the eurozone – and assuredvisiting Greek Prime Minister Antonis Samaras that Germany remained committed to hiscountry’s membership of the eurozone.
While it required courage to take such a tough stance, doing so helped to bolster her position at home and throughout the eurozone. Thereis now no doubt that Merkel is willing to commit Germany to the cause of preservingboth the European Union and the eurozone, and that she will work to achievethat goal. If she succeeds, she will emerge as the first great European leaderof the twenty-first century.
This stance suggests that Merkel appreciates the essence ofthe argument that François Heisbourg, the chairman of the council of the InternationalInstitute for Strategic Studies (IISS), advanced in a recentessay: a federal arrangement does not fallapart because of problems at the peripherybut because of “failure at the heart of the system.” Merkel has come to terms with Germany’s position – and that itmust act to preserve the unity of the whole.
The eurozone (and probably the EU) cannot be saved in Greece or Finlandif it cannot be saved in Germany.Committing Germanyto that objective is precisely what Merkelhas defined as her political goal for the rest of her term in office.
Within hours of declaring her leadership at home, Merkelannounced her visit to Beijing.The timing was highly significant: Merkel goes to China, the emerging global power,after declaring her own commitment to strengthening the eurozone, if not the EUas a whole, as a credible pole of an emerging multipolarworld.
In recognition of Germany’sgrowing significance, Chinese Prime Minister Wen Jiabao welcomed a delegationof German business leaders to Beijingthis May with the words: “Stronger Chinese-German cooperation is good for thetwo countries, good for China-EU relations, and good for world prosperity andstability. The strategic dimension of Chinese-German relations, therefore, canonly be strengthened, not weakened.”
There are several dimensions to the bilateral relationship.Germany needs both China’smarkets and the funds that its government can deploy to purchase Germanand European bonds. It also has more than 7,500 enterprises operating in China, withgross investment totaling $18.5 billion. Moreover, Germanyhas sold $15 billion worth of technology to China, and bilateral trade hit ahigh of $169 billion in 2011, accounting for 30% of total China-EU trade. Thetwo countries have set a bilateral trade target of $280 billion for 2015.
Trade, however, is not the only immediate concern. Far moreimportant, especially for Germany,is to get Chinato invest in and hold its bonds. In mid-August, at the First IISS OberoiLecture in Mumbai, Klaus Regling, the CEO of the European Financial StabilityFacility, underscored the importance of Chinese demand for EFSF bonds and China’s role instabilizing the eurozone.
Regling also revealed that there is now increased andfrequent coordination between monetary authorities in the United States, Germany,and China,drawing attention to the fact that the “old Triad”of the dollar, euro, and yen may now have been replaced by a “new Triad” of thedollar, euro, and Chinese renminbi. While Regling spoke of an emerging“multipolar monetary system,” his remarks clearly indicated the functioning ofa “tripolar” system.
Lying at two ends of that monetary triangle, the eurozoneand Chinahave acquired a geopolitical stake in helpingeach other. HansKundnani and Jonas Parello-Plesner of the European Council on ForeignRelations view the China-Germany relationship as one that will shape theoverall China-EU relationship. Like many strategic analysts, they worry whetherGermany,in pursuit of purely short-term economic interests, might forsake long-term strategic interests and concernsabout human rights, environmental problems, pressfreedoms, and other political and geopolitical issues.
It is significant, therefore, that German political partieshave emphasized the need for Merkel to raise such matters in her talks withChinese leaders. However, Merkel’s focus may well remain on trade, investment,and currency flows. After all, unless she can turnaround the eurozone, her rising profile at home and in Europecould easily wither.
What this means is that to secure German leadership ofEurope, and her own leadership of Germany, Merkel has to “walk on twolegs,” so to speak. She needs to balance both geo-economic and geopoliticalfactors – both interests and values – in advancing Germany’srelations with China.

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关键词：China HINA relationship Coordination significance leadership difficult recently overseas message

Merkel China trip should be seen as aneffort to assert leadership across the eurozone.
At home, Merkel recently sent out a clear message to her critics that Germany mustpay a price for eurozone leadership. a federal arrangement does not fall apart because of problems at the periphery but because of “failure at the heart ofthe system.”While it required courage to take such a tough stance,doing so helped to bolster her position athome and throughout the eurozone.(assert leadership across the eurozone.)

Within hours of declaring her leadership at home, Merkel announced hervisit to Beijing.There are several dimensions to the bilateral relationship. Germany needs both China’s marketsand the funds that its government can deploy to purchase German andEuropean bonds.It also has more than 7,500 enterprises operating in China. Moreover, Germany has sold $15 billion worth of technologyto China.
Trade, however, is not the only immediate concern. Far more important,especially for Germany, isto get Chinato invest in and hold its bonds.Lying at two ends of that monetary triangle, the eurozone and Chinahave acquired a geopolitical stake in helpingeach other. Like many strategic analysts,they worry whether Germany,in pursuit of purely short-term economic interests, might forsake long-term strategic interests and concernsabout human rights, environmental problems, pressfreedoms, and other political and geopolitical issues.(relationship between China and Germany,short-term and long-term goal of Germany)

Merkel has to “walk on two legs,” so to speak. She needs to balance bothgeo-economic and geopolitical factors – both interests and values – inadvancing Germany’srelations with China.