• Wed. Mar 29th, 2023

RPT-Germany to seek closer economic ties with Japan amid offer chain tension

ByEditor

Mar 18, 2023

(Repeats item really initial published on Friday with no alterations to text)

TOKYO, March 17 (Reuters) – German Chancellor Olaf Scholz will touch down in Japan on Saturday with six of his ministers looking for closer economic ties, as he considers lowering German dependence on Chinese raw elements amid international offer chain tensions.

Scholz and Japanese Prime Minister Fumio Kishida are organizing a “government consultation” involving a quantity of cabinet members from every nations to speak about techniques to protected economic security.

“As democracies and as hugely industrialized, export-oriented economies, Japan and Germany face equivalent challenges in shaping the digital and ecological transformation and strengthening the resilience of their economy in difficult geopolitical situations,” Franziska Brantner, state secretary in Germany’s economy ministry, told Reuters.

Supplied Japan’s passing of a bill on economic security, Berlin hopes to study its raw material method and take Tokyo’s cue on how to decrease dependency on imports, a German government official described of the go to.

In a move largely focused at China, Japan’s parliament passed an economic security bill final year aimed at guarding technologies and reinforcing necessary offer chains.

Trade in amongst Germany and China rose to a record level final year, making the Asian nation Germany’s most necessary trading companion for the seventh year in a row regardless of political warnings in Berlin about excessive dependence.

Goods worth about 298 billion euros had been traded in amongst the two nations in 2022, up about 21% from a year just prior to, according to info from the German statistics workplace.

Japan is Germany’s second greatest trading companion in Asia behind China, with volumes reaching about 46 billion euros in 2022.

Worried about Germany’s dependence, the centre-left government is now taking a tougher line towards Beijing than its centre-appropriate predecessor and is exploring techniques to wean itself off China’s economy. (Reporting by Sakura Murakami in Tokyo and Riham Alkousaa in Berlin Editing by Alex Richardson)

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