economic consequences

Germany has issued a stark warning to China regarding the economic consequences of its support for Russia amid the ongoing Russo-Ukrainian war.

Vice Chancellor Robert Habeck reiterated these concerns during a meeting in Beijing, underscoring the direct impact on German and European security interests.

Habeck, who also serves as Germany’s Minister of Economic Affairs, addressed representatives of the Chinese government on climate-related matters, emphasising the intertwined nature of economic dependencies and geopolitical decisions in light of the Ukraine war.

“This war directly affects German and European security interests,” Habeck stated, echoing similar remarks made on Friday.

His Chinese counterpart, Zheng Shangze, Chairman of the National Development and Reform Commission (NDRC), engaged in discussions pivotal to managing China’s economic development.

“We would be acting differently and certainly not scrutinising our dependencies on raw materials and technical goods as harshly if it weren’t for this war or China’s support for Russia in this conflict,” Habeck highlighted.

He stressed the interconnectedness of these issues, noting the adverse impact on bilateral relations already felt.

NATO Secretary General Jens Stoltenberg earlier this week called on China to be held accountable for supporting Moscow’s invasion of Ukraine.

In response, Beijing urged NATO to engage in introspection rather than baseless accusations and attacks on China.

Last week, the Group of Seven (G7) nations announced their intent to continue implementing measures against entities in China and third countries materially supporting Russia’s military operations against Ukraine.

“China’s ongoing support for Russia’s defence industrial base is enabling Russia to maintain its illegal war in Ukraine and has significant and broad-based security implications,” the G7 leaders said, calling on Beijing to “cease the transfer of dual-use materials.”