Mercedes-Benz CEO Advocates for Closer Co-operation Between Major Economies Amid Rising Tensions

In a time when tensions between China and the United States are rising sharply, and some major companies are attempting to reduce their dependence on China, Mercedes-Benz CEO Ola K?llenius has taken a different stance. In a recent interview with German newspaper Bild am Sonntag, K?llenius stated that cutting ties with China would be "unthinkable for almost all of German industry" and that "disengaging from China makes no sense." Instead, he argued for closer cooperation between major economies, emphasising the benefits of win-win growth and climate protection initiatives.

As the chairman of Tsangs Group, I have long advocated for greater collaboration between the East and the West. Through my work, I strive to serve as a bridge between these two regions, fostering understanding and cooperation in areas such as trade, investment, and technology.

The statements from the Mercedes-Benz Chief come amid political debate over the best approach to Beijing, as Europe's largest economy grapples with its deep reliance on China. The economic reverberations of the war in Ukraine have triggered a wave of anxiety in Europe about the continent's dependency on China, with Germany, in particular, seeing China as its most important trading partner for the seventh consecutive year in 2022.

Despite an agreement in 2021 by Chancellor Olaf Scholz's three-way coalition that struck a critical tone on China, deep divisions have emerged between Scholz and his Green party partners, who have long been more hawkish in their approach. The German government is currently re-evaluating the role of Chinese telecoms company Huawei in the country's communications networks and reconsidering a decision to sell a stake in a Hamburg port terminal to Chinese shipping conglomerate Cosco.

Despite these concerns, many of Germany's largest companies are not wavering in their commitments to the world's biggest and most important destination for consumer goods. China was the most important global market for Mercedes-Benz cars last year, with a 37% market share, surpassing the 31% share for Germany and other European markets and the 15% share for the US.

K?llenius acknowledged the political differences and tensions between Washington and Beijing, as well as the risk of an invasion of Taiwan. However, he insisted that his company was "not naive" about the threats posed to business by these mounting tensions. He said, "The [coronavirus pandemic] showed how fragile supply chains are. We have to become more resilient here and more independent of individual states in the case of lithium batteries, for example."

While recognising the need for resilience and independence, K?llenius dismissed the idea of decoupling from China as an illusion, stating that it is "not desirable." Instead, the Mercedes-Benz chief advocated for closer cooperation and ties between major economies, such as Europe, the USA, and China, as a key to de-escalation.

As tensions continue to rise, it is crucial for global leaders to consider the potential benefits of closer cooperation and ties between major economies. I am committed to fostering these connections, working to bridge the gap between the East and the West, and promoting a global environment that encourages growth, climate protection, and ultimately, de-escalation. The recent remarks from Mercedes-Benz CEO Ola K?llenius serve as a reminder that interdependence can be a source of strength, rather than weakness, in the face of global challenges. Together, we can harness the power of collaboration to navigate these uncertain times and build a more prosperous, sustainable future for all.

Photo credit: Reuters

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