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German Vice-Chancellor Lars Klingbeil is set to chair talks between his Social Democrat Party (SPD) and the Chinese Communist Party (CCP) in Beijing next month, even after Foreign Minister Johann Wadephul was forced to postpone a trip to China after being unable to arrange enough meetings. The SPD and CCP meeting will take place in Beijing from November 17 to 19, several sources confirmed, as the two parties continue a long-standing tradition of dialogue. Klingbeil is the leader of the SPD, but also holds two roles in the cabinet of the German government led by conservative Friedrich Merz: vice-chancellor and finance minister. Nonetheless, the party meeting will come at a testy time for the countries’ bilateral ties. A planned trip to China by Merz this year could be in question after his top envoy, Wadephul – also a conservative – pulled the plug last Friday on a trip that was supposed to kick off on Sunday. The ministry confirmed that he only had a single meeting on his agenda, with the Chinese Foreign Minister Wang Yi. In Brussels, several official sources said the cancellation was likely linked to the EU’s move to sanction two Chinese oil refineries and one oil trader last Thursday, for their role in funding Russia’s war in Ukraine. Two of the companies are state-owned. The calendar challenge came, however, after Wadephul and other German diplomats had adopted an increasingly assertive approach to Beijing. The minister visited Japan during the anniversary period of World War II, and delivered remarks that were highly critical of China, which was at the time commemorating its victory over Japan. “China repeatedly threatens, more or less openly, to unilaterally change the status quo and shift borders in its favour,” Wadephul said during his August trip to Tokyo, slamming China’s “increasingly aggressive” behaviour in the Taiwan Strait and the East and South China seas. Earlier this month, meanwhile, the German ambassador to Unesco, Kerstin Pürschel, used a meeting of the Paris-based organisation to ask how, in a country “covered with cameras”, Uyghur and Tibetan citizens could so frequently disappear, according to a report in Intelligence Online, a digital publication dedicated to state intelligence services. A high-profile Sino-German business event slated for Suzhou from November 19 to 21 has also been postponed, with the German Chamber of Commerce (AHK) Greater China citing “organisational reasons”, according to a notice on its website. Noah Barkin, an analyst of German-China relations at the German Marshall Fund of the United States, said Klingbeil had been earmarked to speak at the “Xceleration Days” event. “It would be a bad look for Klingbeil, as German vice chancellor and finance minister, to participate in a dialogue between the SPD and the CCP,” Barkin said, who added that it would be a “bad look” after Wadephul was forced to cancel his trip. “At a time when China is hitting Germany hard with its rare earth controls, it is vital that Berlin presents a united front. Instead, Klingbeil would be offering himself up as a pawn in Beijing’s divide and rule game.” The SPD did not immediately respond to a request for comment. During his trip, Merz’s No. 2 is expected to raise a series of crises in the EU-China relationship. Beijing’s recent expansion of export restrictions on rare earth minerals, superhard materials and some battery technology has struck fear into the heart of European industries. They will be discussed during a day of talks between EU and Chinese negotiators in Brussels on Friday. Meanwhile, the effective seizure of the Dutch-based, Chinese-owned chipmaker Nexperia by the Dutch government has left the German car industry on the verge of a semiconductor supply crisis. The Hague intervened after learning that the Chinese owner planned to close some of its European manufacturing plants, but also amid a pressure campaign from the United States to remove the Chinese CEO if Nexperia was to avoid being added to a blacklist. There are 500 Nexperia semiconductors in every European-made car, according to German newspaper FAZ, but with the firm now cut off from its Chinese parent company by Beijing’s retaliatory export controls, the flow of chips is set to be disrupted. The European Automobile Manufacturers’ Association warned on Wednesday of “imminent disruption” emanating from the “Nexperia crisis”. “The industry is currently working through reserve stocks, but supplies are rapidly dwindling. From a survey of our members this week, some are already expecting imminent assembly line stoppages. Many alternative suppliers exist, but it will take many months to build up the additional capacity needed to meet the shortfall in supply,” said director general Sigrid de Vries. A report in Handelsblatt last week said the German government “will attempt to mediate between China, the Netherlands and the United States to achieve de-escalation and avert damage to the economy” on the Nexperia case. The SPD and CCP established relations more than 40 years ago and last year their regular meeting level was upgraded to “strategic dialogue” despite national ties wavering recently, according to a Chinese government readout of a meeting last September. While the parties enjoy close ties, Klingbeil has been critical of China’s rare earth controls. “We have made it clear within the G7 that we do not agree with China’s approach,” he said on the sidelines of this month’s IMF meetings in Washington. “We are monitoring the situation closely and doing what we can politically to prevent further tensions between the US and China.”
