Scholz warns Iran as attacks on Israel overshadow China trip

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April 14, 2024 – 1:47 p.m.

By Andreas Rinke and Sarah Marsh

CHONGQING/BERLIN (Reuters) – Chancellor Olaf Scholz warned Iran on Sunday against further attacks on Israel, as the escalating conflict in the Middle East overshadowed the start of his three-day tour of China.

Scholz travels to Chongqing, in the southwest of the country, as well as Shanghai and Beijing, on a visit aimed at strengthening ties with Germany's main trading partner, while addressing divisions growing concerns over issues such as Chinese trade practices and its support for Russia.

But the Iranian attack on Israel appears set to redefine the agenda and tone of the visit. For example, Scholz will participate from his hotel in a video meeting of G7 leaders on Sunday to discuss the Iranian attack on Israel, a source in the German delegation told Reuters.

German officials had also expressed hope before the trip that Beijing could play a positive role in easing growing tensions in the Middle East, despite their critical assessment of its support for Russia in its invasion of Ukraine.

China played a mediator role between Iran and Saudi Arabia last year, and Reuters reported that China asked Iran to help curb attacks on ships in the Red Sea by the Houthis supported by Iran, under penalty of harming trade relations with Beijing.

Scholz, who is traveling with several German CEOs, is scheduled to meet Chinese President Xi Jinping and Premier Li Qiang on Tuesday.

“We will do everything to stop further escalation,” Scholz told reporters. “We can only warn everyone, especially Iran, against pursuing this path. »

Upon his arrival, Scholz condemned Iranian strikes against Israel “in the strongest possible terms,” his spokesperson said. Scholz was kept informed of developments in the Middle East during the flight, government sources said.

The Chancellor visited German car supplier Bosch's hydrogen fuel cell plant in Chongqing on Sunday, highlighting an area of ​​growing tensions.

The EU is conducting several investigations to determine whether Chinese exports of green technologies, such as battery electric vehicles, which it says have benefited from state subsidies and could harm local producers.

Germany's auto industry fears the investigations could lead to a trade war that could damage its prospects in the world's largest auto market. Scholz's visit is being monitored for signs of how Germany supports the European investigation and is willing to go against the wishes of a key domestic industry.

Scholz said Sunday the plant showed the importance of cooperation to address major challenges facing the world, such as climate change.

Berlin's overall stance toward China has become more critical since the war in Ukraine.

Last year, Germany also published its first China strategy, outlining “unfair practices” and risks to supply chains in a potential conflict over Taiwan, and calling for “risk reduction.” However, efforts to diversify out of China have so far been uneven.

During his visit, Scholz is also expected to address China's support for Russia. On Friday, German officials bluntly declared that Beijing's support and exports to Russia were enabling Moscow to wage a war of aggression in Ukraine and causing a “growing loss of reputation for China” in Europe and beyond.

“This is about China not supporting Russia in its brutal war against its neighbor Ukraine,” Scholz wrote in a post on the social media platform X on Saturday.

(Reporting by Andreas Rinke in Chongqing and Sarah Marsh in Berlin; editing by Antoni Slodkowski and Miral Fahmy, William Maclean)

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