If it is membership of the EU which is undermining competitiveness, why is it that Germany is doing so much better at exporting to China than the UK? Last year, its exports (pdf) to China were €71.4bn (£51.7bn) compared to the UK’s £12.8bn, which meant such exports represented 2.4% of GDP against 0.7 per cent for the UK.
I was curious and Googled. Wikipedia has this to say:
The frequent high-level diplomatic visits are acknowledged to have helped guarantee the smooth development of Sino-German relations. From 1993 to 1998, German and Chinese leaders met face-to-face 52 times: Among those Chinese leaders who visited Germany were President Jiang Zemin; Qiao Shi, former Chairman of the Standing Committee of the National People’s Congress (NPC); and Li Peng, former Premier and Chairman of the NPC Standing. Meanwhile, German leaders who visited China included President Roman Herzog, Chancellor Helmut Kohl, Foreign Minister Klaus Kinkel and Minister of State at the German Federal Foreign Office Ludger Volmer. Among these leaders, Chancellor Kohl visited China twice in 1993 and 1995. Since the new German government came into power in October 1998, Chancellor Gerhard Schröder has paid three visits to China. One after another from Germany came Vice Prime Minister and Foreign Minister Joschka Fischer, Defense Minister Rudolf Scharping, and Minister of Economics and Technology Werner Müller. At the same time, Germany welcomed Chinese Primer Zhu Rongji, Foreign Minister Tang Jiaxuan, State Councilor Wu Yi, Member of the Political Bureau of the Chinese Communist Party Central Committee Wei Jianxing as well as Vice President Hu Jintao.
Relations would continue to improve after 1998. For instance, both Beijing and Berlin fervently opposed the invasion of Iraq in 2003, and in 2006 both Germany (the largest economy and the most populous country of the European Union) and China further enhanced their bilateral political, economic and diplomatic ties within the framework of Sino-EU strategic partnerships. Both Germany and China opposed direct military involvement in the 2011 Libyan civil war. Before the 2011 visit of China’s PM Wen Jiabao, the Chinese government issued a “White Book on the accomplishments and perspective of Sino-German cooperation”, the first of its kind for a European country. The visit also marked the first Sino-German government consultations, an exclusive mechanism for Sino-German communications.
So I suppose the answer to Chris’s question might be that Germany is China’s biggest trading partner and has a special trading relationship with it outwith the EU.