Germany’s President Aims to Diversify Ties During Southeast Asia Trip – The Diplomat

ASEAN Beat | Diplomacy | Southeast Asia

On the finish of January, the workplace of German President Frank-Walter Steinmeier introduced that he would make an official go to to Cambodia and Malaysia in mid-February, the primary visit by a German head of state to Cambodia and the primary by a German president to Malaysia since 1986. The official goal of the journey, which is able to run from February 13 to 19, is meant to underline Germany’s international coverage purpose of diversifying its political and financial relations.

This purpose is per the political turning of occasions, or Zeitenwende, introduced by Chancellor Olaf Scholz after the Russian invasion of Ukraine final 12 months. Since Germany is in search of new companions, it must be thought of what pursuits the nation is pursuing in Cambodia and Malaysia based mostly on the already current relations and what the potential for the 2 Southeast Asian nations is perhaps, contemplating Steinmeier can be adopted by a enterprise delegation.

German relations with Cambodia are based mostly totally on growth cooperation, corresponding to German help for reconciliation and demining tasks. In recent times, Cambodian exports to Germany, which consist primarily of textiles and footwear, have elevated many occasions over, but the buying and selling quantity is small within the grand scheme of issues. As well as, many German enterprises have settled within the Kingdom. Nevertheless, financial relations between the 2 nations skilled a extreme setback in 2020 when Cambodia misplaced a portion of its duty-free entry to the European single market beneath the Every little thing However Arms (EBA) initiative attributable to human rights considerations.

German and Cambodian stakeholders view German-Cambodian relations as balanced and constructive total, with widespread pursuits in deepening financial and socio-cultural relations. Nevertheless, views differ on, inter alia, the event potential of political relations, significantly relating to the democratization course of in Cambodia.

Since Cambodia is perceived to be one in every of China’s closest companions within the Affiliation of Southeast Asian Nations (ASEAN), Steinmeier’s go to will be seen within the context of the rising nice energy rivalry between the US and China. Because the financial potential of Cambodia is restricted, purely as a result of small measurement of the Cambodian financial system, the German curiosity in Cambodia must be seen extra from a strategic-political than from an financial angle. Nevertheless, Steinmeier’s go to presents the Kingdom a chance to get in contact with German enterprise, because the German Asia-Pacific Enterprise Affiliation was tasked by the president’s workplace to assemble a enterprise delegation. This might assist foster the diversification of Cambodia’s financial ties and draw extra European funding, which is required to make sure industrial upgrades and success in turning into a better middle-income nation, as pursued by the Hun Sen authorities.

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Malaysia presents a special image. Germany and Malaysia have maintained shut financial relations for years. Alongside Singapore, Malaysia is Germany’s most vital buying and selling companion in Southeast Asia, rating within the prime 40 of Germany’s buying and selling companions globally. Greater than 700 German enterprises have settled offshoots in Malaysia and the nation produces key commodities wanted by German business, corresponding to rubber and petroleum merchandise. The excessive financial relevance of Malaysia can also be mirrored within the upcoming financial roundtable with German and Malaysian enterprise leaders. German-Malaysian relations have been traditionally dominated by enterprise and commerce, but lately the connection has flourished by more and more embracing political cooperation, particularly contemplating Malaysia’s key position in ASEAN.

Whereas Malaysia has significantly higher relations with the West than Cambodia, it too makes little effort to cover its good relations with China. Contemplating the nation’s developed financial system, pure assets, and strategically vital place on the Strait of Malacca, enhancing relations with Malaysia is a key goal within the context of Germany’s renewed dedication to forge nearer ties with ASEAN. Thus, the Steinmeier go to presents Malaysia the potential to deepen financial ties with Germany to speed up additional financial growth, in addition to strengthen political ties with Germany as a key participant within the European Union.

Steinmeier’s go to continues German efforts already highlighted by final 12 months’s go to of Chancellor Scholz to Vietnam and Singapore. The renewed German curiosity within the Asia-Pacific is sure into efforts to diversify political, however largely financial ties, to scale back financial (co-)dependency, particularly with China. Because the warfare in Ukraine toppled Berlin’s longstanding coverage doctrines, the nations of Southeast Asia may probably revenue from vital will increase in commerce with and funding from Germany. Nevertheless, whether or not the German facet pushes via with its proclaimed purpose of fostering nearer ties with Southeast Asia stays to be seen.