United by the common trouble, the advanced global economies are keen to devise a joint strategy to survive in the Trump-launched trade war. In early July, the US introduced high import tariffs on numerous items from China and Europe. This protectionist stance prompted Germany and China to claim their commitment to the versatile international trade practice. The commitment has been confirmed by recent mutual trade agreements worth over $20 billion from each side. Moreover, in the wake of the government deals, famous German giants such as BASF, BMW, Volkswagen, Daimler, Siemens, and Bosch reported on their new partnerships with Chinese investors.
Shortly before the US tariffs came into force, the leaders of Germany and China had held successful talks to lobby against Trump’s trade tariffs. "We have a lot of direct investment in the United States of America, we have a lot of direct investment in China," Germany’s Chancellor Angela Merkel commented on relaxing restrictions on China’s investment. “It really is a multilateral interdependent system that at its best most likely is really a plurilateral win-win situation when we stick to the rules." "Free trade plays a strong leading role for both sides and for the world economy," China’s Prime Minister Li Keqiang highlighted the common goal. This rhetoric is beneficial to both countries. Amid the lingering standoff between the US and its major trade partners, Washington rules out any compromise. No wonder, China and Germany welcome a trade alliance. Curiously, Beijing is more interested in strong trade allies than Germany. Global investors have to wait for a response from the White House.
