German foreign minister to discuss rare earths, steel in China visit

Germany's foreign minister plans to tackle critical issues such as rare earths and steel during an upcoming trip to China, he said on Sunday, highlighting the challenge for Berlin in dealing with what is both its top trading partner and major rival.

Johann Wadephul is scheduled to travel to China for his first visit on Monday, at a time when trade tensions between Brussels and Beijing are intensifying, particularly in the fields of chips, minerals, steel and electric vehicles.

"Trade restrictions, particularly on rare earths, are just as much a cause for concern for our companies as overcapacity in electromobility and steel," Wadephul said in remarks prepared ahead of his trip.

"I will address these issues, which are so central to the German economy," he added, also urging China to use its influence over Russia in efforts to bring peace to Ukraine.

TRIP WAS POSTPONED

Wadephul was initially scheduled to travel to China in October, but his visit was postponed because Beijing had only confirmed one of the meetings he requested.

"In times of growing international tensions and geopolitical upheaval, direct, intensive exchange with China is necessary, indeed indispensable," Wadephul said.

"It is clear that many questions are not easy to answer and that our perspectives sometimes differ greatly. But it is equally clear that freedom, security and prosperity in Germany and Europe are closely linked to China."

Recent restrictions on Chinese supplies of rare earths and semiconductors have highlighted Europe's dependence in these key areas, as well as the fact that the continent has so far failed to localise supply of strategic components.

In addition, imports of low-cost steel from Asia have pummelled local industry in efforts to decarbonise, causing Brussels to introduce quotas to better protect struggling steelmakers.