Hedge against Trump
In Germany, there is growing concern about the role of the Chinese state in the economy under Xi, from a new cyber security law, to the influence of Chinese communist party officials in joint ventures and the "Made in China 2025" initiative which some see as a threat to German manufacturing dominance.
Still, with German companies continuing to do a booming business in China, Merkel's government faces internal pressure not to adopt a confrontational stance, as Trump has done by threatening China with billions of dollars in trade tariffs.
"Despite the troubles, business is very good for German companies in China," said Hubert Lienhard, chairman of the Asia-Pacific Committee of German Business. "A lot of companies make a significant portion of their revenues there. China is a market that we really need."
Thorsten Benner, director of the Global Public Policy Institute in Berlin, said the German government's preference would be to work with the U.S. administration to wring concessions from Beijing on trade and investment.
But because a common approach appears impossible under Trump, he said Germany felt a need to "hedge against the worst excesses" of the American president.
On a range of important global issues, from climate change and free trade to the Iran deal, Berlin now has more in common with Beijing than it does with Washington.
"At a time when the Trump administration does not appear interested in the transatlantic partnership, Europe must look after its own interests," said Michael Schaefer, a former German ambassador to China who is chairman of the BMW Foundation.
"Part of this is finding partners that it can work with to defend these interests. China can play a significant role here in a lot of areas."
