German Chancellor Scholz (left) made a lightning visit to China late last year and met with Chinese leader Xi Jinping.

(Associated Press)

[Financial Channel/Comprehensive Report] Nikkei Asia disclosed that Germany’s latest China policy is about to be released. Alienation of China is the consensus of the ruling and opposition parties. Germany is preparing to take a tough stance on key areas including trade and technology, in order to prevent dual-use technologies from falling into the In China's hands, even academic exchanges may be restricted to reduce China's influence in the German business community, suggesting that the business-oriented pro-China line of the Merkel era will be a thing of the past.

A senior German official involved in Asian policy told Nikkei Asia that Berlin’s forthcoming German-China policy is being finalized, and the entire draft will have rather strong wording. The new China policy will be formally approved.

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Officials familiar with the draft said the new tougher China policy will limit investment in China and supervise German companies that rely too much on Chinese business, with the aim of reducing China's influence in the German business community.

Officials added that even academic exchanges could be restricted to prevent dual-use technology from falling into Chinese hands.

As the hard-line Greens and Social Democrats wrestle over the details, overall, the most unmistakable message of alienating China also means former Chancellor Angela Merkel's business-focused China policy is about to history.

In addition to Germany, France and Italy have also begun to review their China policies. The European thinking is that Russia will only deepen its dependence on China in the next few years.

The combination of energy-rich and military heavyweight Russia with economic powerhouse China is keeping European leaders awake at night.

Moreover, once an emergency occurs in Taiwan, the European Union led by Germany and France will face pressure to impose economic sanctions on Beijing.

Therefore, Europe needs to gradually reduce its dependence on China without angering Beijing too much.

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