Tag: Germany

  • Germany to Build Strategic Relationship in Central Asia

    Germany to Build Strategic Relationship in Central Asia

    Germany, having lost momentum in international politics and economics, is also joining the race for Central Asia’s abundant and untapped natural resources. Chancellor Olaf Scholz is currently visiting Central Asia, a region highly sought after by global powers – from the United States to Japan – for its rich mineral and natural gas reserves, now more accessible as Russian influence wanes. While the Germany-backed European Union is working to strengthen ties, Germany has its own interests, particularly in securing natural gas imports. The ban on Russian gas has severely impacted Germany, and continuing on this trajectory will further weaken its already struggling economy. Accessing Central Asia’s resources could help Germany regain its lost momentum and global standing. 

    During Scholz’s three-day visit, which included a bilateral meeting and the second Germany-Central Asia summit, the five Central Asian heads of state, now acting as a bloc, gathered in Astana, the capital of Kazakhstan, to meet with German Chancellor Olaf Scholz and discuss expanding trade between the West and Central Asia. Although no specific deals were announced, the atmosphere was positive, with all parties expressing optimism for future agreements. Scholz emphasized that exchanges between Central Asia and Germany had never been closer and were steadily increasing.

    Central Asian leaders conveyed a clear message that mutual benefits would be essential for cooperation. Kazakh President Kassym-Jomart Tokayev, the host of the meeting, reinforced this sentiment, noting that the exchange of views demonstrated a strong mutual interest in deepening ties. Tokayev provided a rough outline for future trade relations, indicating that Kazakhstan and other regional states were eager to assist Germany and the EU with energy needs. However, Central Asia expects more than just financial compensation in return for its energy exports.

    Describing Germany as a global leader in economic and technological innovation, Tokayev expressed that Kazakhstan and other Central Asian states aim to leverage German expertise to advance the localization of production and create high-value products. He highlighted several economic sectors that could benefit from German technology transfers, including finance, agriculture, transit logistics, and information technology. Tokayev also emphasized Kazakhstan’s interest in German expertise and investment to support Central Asia’s green energy initiatives. He specifically mentioned a collaborative project involving Azerbaijan, Kazakhstan, and Uzbekistan to develop solar and wind power plants for exporting electricity to the EU. Tokayev subtly suggested that Germany consider participating in this strategic project. It seems that Central Asian countries are firm in their demands for compensation in exchange for their resources. For Germany, securing affordable gas is now a critical priority.

    Before visiting Kazakhstan, Scholz stopped in Uzbekistan, where his discussions in Samarkand with Uzbek President Shavkat Mirziyoyev were similarly governed by a mutual benefit approach. The main outcome was a politically strategic agreement allowing Germany to send potential Afghan migrants to Uzbekistan for eventual repatriation to Afghanistan. In return, Berlin agreed to accept skilled Uzbek workers to fill job vacancies in Germany. For Scholz, this agreement demonstrates that his beleaguered Social Democrat-led government is addressing domestic migration issues. Public dissatisfaction with the government’s handling of migration has eroded support for his coalition and was a significant factor in the far-right Alternative for Germany (AfD) Party’s strong performance in recent state elections.

    The deal is also a notable achievement for Mirziyoyev, whose administration aims to transition Uzbekistan’s economy from raw material production to finished goods manufacturing. As part of this economic transformation, the government is restructuring the labor market and labor migration policies to create more opportunities for skilled workers abroad. And If the Taliban agrees to accept Afghan nationals sent from Germany to Uzbekistan, it could showcase their ability to act as a responsible international actor, potentially supporting their efforts to legitimize their rule.

    In the wake of Russia’s invasion of Ukraine and its failure to meet its objectives, Central Asian states have gained greater confidence in their negotiations with other global actors. Alongside traditional partners like Russia and China, leading figures from the US, EU, Japan, South Korea, India, Turkey, and the Middle East are now engaging with Central Asia. They are discussing initiatives aimed at boosting the economies of both sides and influencing the region’s political landscape.

    If Germany successfully collaborates with Central Asia and begins importing natural gas from the region, it would represent a significant setback for Russia. Given Russia’s ongoing political influence in Central Asia, such a shift could lead to disruptions and political unrest. Other countries may seize this opportunity to advance their own interests. Thus, while new partnerships in Central Asia present both risks and opportunities, Germany stands to gain significant benefits from its involvement in the region.

  • Strategic Alliances: German President Lands in Hanoi, Vietnam Poised for Global Production Role

    Strategic Alliances: German President Lands in Hanoi, Vietnam Poised for Global Production Role

    As Geopolitical Tensions Rise in Asia, Vietnam Gains Prominence as Europe’s Alternative to China. With China taking assertive positions in the South China Sea, Taiwan, and facing escalating tensions with the United States, relationships between China and the West, including Europe, have become strained. Nevertheless, propelled by the Western demand for cost-effective labor and production, Vietnam is steadily emerging as the new focal point.

    The West, seeking economical alternatives without disrupting global logistics routes significantly, views Vietnam as the new China. This shift is evident in the numerous bilateral talks and agreements between lawmakers from Vietnam and Europe. The recent visit of German President Frank-Walter Steinmeier to Indonesia further underlines this trend. The German President’s first foreign visit in 2024 is a crucial event in the first high-level exchange between the two countries this year. 

    During his visit, President Steinmeier is slated to engage in discussions with Việt Nam’s top leaders, focusing on strategies to enhance bilateral cooperation across various sectors. Additionally, he plans to tour German projects in Ho Chi Minh City and its environs, showcasing the evolving ties between the two nations.

    At the same time, Prime Minister Phạm Minh Chính concluded a significant European tour focused on trade talks with various European leaders. Over two days in Davos, he participated in more than 30 activities, including the World Economic Forum’s (WEF) Country Strategic Dialogue on Việt Nam and discussions about Việt Nam’s global vision. Prime Minister Chính, accompanied by his spouse and a high-ranking Vietnamese delegation, returned to Hà Nội on the same day that the German President arrived in the city.

    He took part in official visits to Hungary and Romania, leaving a lasting impression on participants. These events showcased Vietnam’s impressive socio-economic accomplishments, development strategies, dedication to independence and self-reliance, and responsible contributions to regional and global peace and development. His activities during the visits were diverse, including delivering policy speeches at universities, actively participating in business forums, holding meetings with friendship associations connecting Hungary, Romania, and Vietnam, engaging with Vietnamese communities, and touring economic and scientific-technical establishments. Both sides committed to enhancing collaboration across various sectors, positioning Vietnam as a bridge connecting Hungary and Romania with the Association of Southeast Asian Nations (ASEAN). Additionally, Hungary and Romania expressed their readiness to facilitate connections between Vietnam and Europe.

    These official visits represented significant milestones in the Việt Nam-Hungary comprehensive partnership and the Việt Nam-Romania traditional and friendly partnership. 

    During discussions with the Romanian Prime Minister, plans were outlined to facilitate infrastructure collaboration with Vietnamese ports, promoting transport growth. There was a commitment to double trade exchanges to EUR€1 billion in the coming years. The Romanian Prime Minister expressed the intention to encourage major Romanian companies in the gas and electricity sectors to establish partnerships with Vietnamese counterparts. He identified agriculture and the pharmaceutical industry as two strategic cooperation areas and proposed the implementation of pilot projects for investment in aquaculture, leveraging Việt Nam’s considerable experience in the field. Additionally, gratitude was expressed for Việt Nam’s donation of 10,000 doses of African swine fever vaccine during the visit, with a desire for collaboration in technology transfer and investment in vaccine production for the European market.

    Việt Nam and the European countries also agreed to fully implement the EU-Việt Nam Free Trade Agreement (EVFTA) and persuade the remainders to ratify the EU-Việt Nam Investment Protection Agreement (EVIPA). A number of cooperation documents in multiple fields were signed during the visits, including nearly 30 on cooperation in education – training between Vietnamese universities and training institutions of the two countries.

    Vietnam’s increasing proximity to Europe has drawn China’s attention, and the Chinese government has responded strategically. In an effort to improve ties with the neighboring communist nation while Hanoi expands its diplomatic ties with the West, President Xi Jinping recently paid his first state visit to Vietnam in six years. During his visit, Xi plans to hold talks with Prime Minister Pham Minh Chinh, President Vo Van Thuong, and Communist Party General Secretary Nguyen Phu Trong in order to strengthen bilateral relations. After that, the two nations continued to negotiate 37 agreements on various subjects, including trade and the advancement of cross-border rail. Furthermore, they chose to carry out joint patrols in the Tonkin Gulf, emphasizing their strategic alliance. 

    Following closely on the heels of United States President Joe Biden’s recent visit to Vietnam, this event underscores the competition among major powers for influence in the Southeast Asian nation. Vietnam has consistently adhered to a diplomatic approach known as ‘bamboo diplomacy,’ aiming to foster positive relations with both China and the United States. Despite expressing concerns alongside the U.S. regarding Beijing’s assertiveness in the South China Sea, Vietnam acknowledges the political commonality and strong economic ties it shares with China. However, Vietnam is strategically positioning itself for economic growth and regional prominence in East Asia.

    In anticipation of increased business from Europe and the United States, Vietnam’s proactive efforts are evident through the swift visits by global powers and the corresponding investments and security assurances provided by each. These unfolding developments highlight Vietnam’s ambition to emerge as a robust economy and a key player in East Asia. With sustained investments and security commitments, Vietnam is poised for significant development, solidifying its status as the emerging economic powerhouse in the region. It seems that Europe has found its new China in Vietnam.