Merkel: The G7 hopes to strengthen cooperation with China, and China may become a "lifeline"

On the 19th local time , German Chancellor Angela Merkel emphasized at a press conference after the G7 summit that the world must strengthen multilateralism and that the G7 hopes to strengthen cooperation with China.

On the 19th local time , the Group of Seven, which consists of the United States, Britain, Canada, France, Germany, Italy and Japan, held a video conference of leaders. After the meeting, Merkel said that the current COVID-19 pandemic has proved the interdependence of countries around the world, and that the economy needs to recover continuously after the pandemic, and that countries around the world need to strengthen multilateralism and international organizations such as the World Health Organization and the World Trade Organization.

At the same time, Merkel also stressed that in order to rebuild the world economic system, the G7 hopes to strengthen cooperation with the G20, especially with China . The G7 will be committed to this and strengthen exchanges and dialogues.

In fact, in the past 2020, China was the only major economy in the world that withstood the dual pressures of the COVID-19 pandemic and the global economic downturn and achieved positive economic growth. The preliminary value of China's GDP in 2020 was 101,598.6 billion yuan, equivalent to 14.73 trillion US dollars, a year-on-year increase of 2.3%, exceeding the 1.9% growth rate predicted by the International Monetary Fund (IMF) in the World Economic Outlook report in October last year.

The United States, Britain, Germany, Japan and other countries all experienced varying degrees of economic contraction in 2020. Among them, Germany's GDP in 2020 was 333.023 billion euros, equivalent to 3.8 trillion US dollars, a real decrease of 3.5% year-on-year. China's economic growth and outstanding performance have also attracted the attention of European countries, especially in the luxury goods sector where the performance is most obvious.

Before the COVID-19 pandemic, China was already the world's largest single market for luxury goods and the main growth engine for the global luxury industry. In 2020, due to the pandemic blockade and the reduction in tourists, global luxury sales suffered a devastating blow, with luxury sales expected to fall 23% year-on-year. China has become the only country in the world with positive growth in the luxury market, becoming a "lifeline" for global luxury companies.

Not only in the luxury goods industry, while many overseas companies are facing a "order shortage" due to insufficient demand , China still maintains a strong purchasing demand. Last year, Germany's exports to China reached 95.9 billion euros, making it Germany's second largest export destination. According to the latest EU statistics, China has now replaced the United States as its largest trading partner.

It is obvious that German Chancellor Angela Merkel has also set her sights on China as her "lifeline". When the United States, Britain, Australia and other countries were still exaggerating the "China threat theory", Germany had already stayed out of it and actively sought cooperation with China. For all sellers, Germany is undoubtedly a more friendly market than other European countries that are hostile to China.

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