Economic cooperation | Central powers looking for reliable rules

Chancellor Friedrich Merz and Japan's Prime Minister Sanae Takaichi Photo: dpa/Kay NIetfeld When Friedrich Merz arrived in the Japanese capital, it didn't take long until the twin towers of Tokyo City Hall glowed in atypical colors. The imposing building was illuminated in black, red and gold - a welcome that was intended to say: There is also a lot of Germany in Japan. During the day it became clear: In the East Asian country, people would like the “partnership of values” between Tokyo and Berlin to expand significantly further. On all possible levels.

Japan may have been the highlight of the German Chancellor's Asia Week, which took him to Japan on Wednesday after a one-day stop in Singapore before traveling on to South Korea the following day. In any case, the number of agreements presented in Tokyo is impressive: 30 agreements were concluded between the states, companies and other institutions of the two countries, and a joint declaration on economic security was also read out.

The private agreements include agreements to collaborate in research and development in areas as diverse as defense, fusion energy, space travel and cancer medicine. There are also plans to further strengthen bilateral exchange in the university sector. The clear wish: Japan and Germany - currently the third and fourth largest economies in the world - should grow much closer together, as Prime Minister Sanae Takaichi emphasized.

This desire also permeates the statement on economic security: “We are convinced that Japan and Germany are ‘premium partners’ with indispensable complementary strengths. They are uniquely positioned to promote cooperation in the area of ​​economic security - with the aim of maintaining a free, open and fair international economic environment and ensuring collective resilience and reliable supply chains among like-minded partners. Collaboration should take place at this level, especially for the automotive industry – which is considered a key sector in both countries. And if economic dependencies on another state were to be “instrumentalized,” Germany and Japan would want to quickly exchange information about this in the future.

In Tokyo, Merz promoted a new global alliance for rule-based trade. Singapore and Japan are also in favor.

Which country is not mentioned, but it is unmistakably clear: China. Germany in particular enjoyed high exports to the People's Republic for many years, but overlooked the fact that it had gradually become dependent on China due to knowledge transfer obligations. Today, Chinese companies have become competitive or even leaders in many areas. People in Tokyo have been warning about this for a long time; Berlin only recently noticed this.

But Friedrich Merz's trip shows that a rethink has begun. The so-called China Shock 2.0, which is driven by Beijing's industrial policy around price dumping through overcapacity and is putting a heavy burden on numerous key sectors in Germany, is raising alarm bells in the government. Japanese government representatives have been trying for a long time - also because of Chinese territorial claims in the Indo-Pacific - to rethink their attitude towards China.

That's why, at his first stop on Tuesday in the city state of Singapore, the CDU politician campaigned for the EU to join the CPTPP free trade agreement, to which twelve states and 600 million people belong, including those from Australia, Chile, Great Britain and Canada. Singapore Prime Minister Lawrence Wong supports the plan. In Tokyo, Merz promoted a new global alliance for rule-based trade. Singapore and Japan are also in favor.

A third country where such ideas generally meet with approval is South Korea. In Seoul, Merz first meets President Lee Jae-Myung. Here, too, there is an understanding that as a middle power you have to join forces with other states and establish reliable rules that apply to everyone. Similar to Japan and Germany, South Korea is an export nation. One area in which bilateral exchange is already intensifying is armaments: here, the Southeast Asian country, which has been formally at war with North Korea for decades, has become one of the world's largest exporters over the past few years. The defense giant Hanwha is currently planning to reach an ammunition or weapons factory in Germany. Several bilateral cooperation projects are ongoing.

Another field in which Germany relies on know-how from South Korea is artificial intelligence. Last year, the South Korean government announced its goal of becoming one of the three largest AI players in the world, particularly in industrial production processes. According to the International Federation of Robotics, South Korea already has the highest robot density in the world, with 1,220 industrial robots per 10,000 manufacturing jobs. German companies are looking for cooperation here.

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