Germany's new push to de-risk its relations with China highlights growing operational, reputational and financial risks for German companies that are particularly exposed to the Asian giant. On July 13, the German government published its long-awaited, first-ever China strategy, which focuses on ''de-risking'' its ties with the Asian superpower (a view that Berlin shares with the broader European Union) through a three-prong approach. The most important element of the strategy is diversifying Berlin's trade and economic ties with other countries as a way to reduce its reliance on the Chinese market as an export and investment destination, as well as its reliance on China for supplies of critical raw materials (such as lithium and rare earth minerals). Secondly, Germany will seek to further reduce the presence of Chinese companies (like Huawei) in the country's critical infrastructure (like its 5G network). And as the final pillar, the strategy document promises to...
