The city of Taicang illustrates the tight ties between the countries — and how difficult it could be for President Biden to win allies in his campaign to isolate Beijing.
German and Chinese flags flutter along tree-lined avenues. Workers are erecting a shopping-and-hotel project with the half-timbered style of architecture more typically found in places like Bavaria or the Black Forest. A nearby restaurant serves Thuringia grilled sausages, fried pork sausages and lots of sauerkraut. And in Erwin Gerber’s bakery nearby in Taicang, an industrial city a little more than an hour’s drive northwest of Shanghai, hungry customers can buy a loaf of country sourdough bread or a pretzel baked the way they are made in Baden-Württemberg. “Everything you find in Germany,” Mr. Gerber said, “you will find in my bakery.” Taicang epitomizes the deep ties between the world’s second- and fourth-largest economies. The Chinese city is so tightly knit with Germany’s industrial machine that some people call it “Little Swabia,” after the German region that the owners of many of its factories call home. But the relationship has also raised concerns that Germany has become overly dependent on China. That could be a particularly thorny problem for President Biden, who has made isolating Beijing on trade and geopolitical issues a major part of his overall China strategy. In December, Germany played a dominant role in hammering out an initial European Union investment protection deal with China, despite objections from the incoming Biden administration. Angela Merkel, the German chancellor, has defended the agreement as necessary to help European companies make further gains in China. She signaled in January that she does not want Germany to take sides in a new Cold War, telling the World Economic Forum, “I’m not in favor of the formation of blocs.” Her stance could have broad sway throughout Europe, given Germany’s position as its largest economy. “It’s a swing state in terms of influence,” said Theresa Fallon, director of the Center for Russia Europe Asia Studies in Brussels. Germany will be under growing pressure in the months ahead to pick a side. The deal with China still requires approval from the European Parliament, where many are hostile to it. It could also face pressure during the early June summit of the Group of 7 industrialized nations, which also includes France, Italy, the United States, Canada, Britain and Japan. Mr. Biden wants to strengthen that institution after Donald J. Trump, the former president, gave it short shrift over the past four years. Some European politicians, voters and rights groups want Germany to take a tougher stance on human rights abuses. They cite China’s crackdown on the democracy movement in Hong Kong and its detention of as many as a million members of predominantly Muslim ethnic minorities in Xinjiang, in China’s far west.