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The geopolitics of Brexit

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Brexit – sanctioned and endorsed by a mass vote for Boris Johnson’s Tories – will be the great geopolitical turning point for Europe, obtorto collo, and for the United Kingdom itself.

In fact, the decision taken by Prime Minister Cameron in June 2016 to hold a referendum already showed what would happen.

Cameron thought the referendum would silence the Tories’ Brexit wing with a stunning defeat, but – as is well-known – this has not happened.

The British Tory Prime Minister, in fact, did not achieve his goals with the negotiations in Brussels that year. As already said, David Cameron clearly thought he could give a sop and keep the Brexit- friendly Tory minority happy, but truth will out.

Let us put aside the traditional explanations about the reasons for the UK-EU break: it is not a matter of maintaining the supremacy of old Anglia over the British territories, such as Scotland, Cornwall or Wales.

This assumption is often reiterated by refined parlour geopoliticians, but it clashes with the results in Wales, where the votes in favour of leaving the EU are 52.5%, while in Northern Ireland, but especially in Scotland, the leave votes reach only 44.2% and 38%, respectively.

If anything, the pro-Europeanism of the island peripheries shows that Brexit cannot be used to “keep” Scotland and Ireland, not the other way around.

Great Britain has always renounced the European criterion of even closer union.

“We want our money back!” This is what Margaret Thatcher said at the European Council in Dublin in September 1979.

Boris Johnson’s “policy line” is exactly the same as Thatcher’s tradition.

Margaret Thatcher saw Jean Monnet-style dirigisme typical of the EU  as  a  huge  obstacle  to  her liberal  and  free-trade  project to modernise and revitalise the British economy.

Not even De Gaulle, however, wanted Great Britain within the EU. “Take your dreams of independent power and stick them up your Eiffel Tower”, as a London popular song went, after the French veto on Britain’s entry into the EU in 1963.

The fact is that France, Great Britain and Germany have all thought of the EU as a tool for their own national geoeconomic and strategic projects, unlike Italy, which has always been frantically looking for international organizations, treaties and groups to replace a national sovereignty that the Italians – after World War II – did not want and for which they were not prepared.

Moreover, what Leo Longanesi called “the waiter’s psychology” has always led our ruling classes to think that the international agreements into which Italy entered were a “gift”, a “favour”, possibly a “tip”.

It should be recalled that Great Britain did not want to be one of the Six countries which founded the European Community.

Even the pro-Europeans, like Harold Macmillan, wanted a “functional” and day-by-day approach compared to the European one, considered dangerously “federal” and basically authoritarian.

Hence, for the current Brexit voters the European Union is a real “usurper” that has too much power, despite the strong lack of democratic and electoral legitimacy.

It should be recalled that the EU was an American idea to make the economies of NATO’s European countries grow, thus maintaining national social and political stability.

Nothing more, nothing less. We will see what will happen to the EU with the US slow loss of interest in the Atlantic Alliance.

Moreover the EU has become the myth of a “third power” between the United States and the Warsaw Pact, with the creation of a single currency that has made the British financiers laugh and has outraged the United States, that find this Euro in their way, which is not a real currency, since it is not a lender of last resort, but rather mimics real currencies. Furthermore, it is also a rigid currency and hence it releases – on the factors of production – the market tensions that would otherwise affect exchange rates, as has always happened.

There were two other EU aspects that the British ruling class never liked from the beginning: the overwhelming power of the European Commission and the Court of Justice, of course, but above all the overwhelming power of France and Germany in the main decisions and on the integration progress itself.

The British obstruction to EU policies, which began in the 1980s,- a typical case of “negative leadership” – were for decades the only way for Great Britain to oppose a process that seemed inertial and, in any case, led by naturaliter anti-British powers such as France and Germany.

It is not a reflection of old gunboat geopolitics. It is a strategic assessment that is still completely exact and topical for Great Britain.

Indeed, the EU always acts as if geopolitics and the primary strategic interests of a country did not exist, covered by the roar of Beethoven’s Ninth Ode to Joy.

“All creatures drink of joy/At nature’s breasts/All the Just, all the Evil/Follow her trail of roses”.

Archetypal images, universal brotherhood, justice based on freedom of thought, concord based on Reason… a typically Masonic Ode, for the Schillerian Finale of the Ninth Symphony.

But times are now very different from Joy for the Germans defeated by Napoleon, the “world spirit on horseback”, as Hegel once described him.

Geopolitical interests, however, are either national or they are not, and the various countries’ forgetfulness of the global strategy – with the EU – was huge and very dangerous.

Also in Great Britain the visible outbreak of the rebellion against the European Union, which materialized with Brexit, was the issue of uncontrolled immigration.

For Great Britain, the mass of arrivals consists of economic migrants coming mainly from Eastern Europe, a situation that has led the British governments to restrict freedom of movement and has put the welfare system – already shrinking after Thatcher’s reforms – in great difficulty.

The 1982 Howe plan, inspired by the Iron Lady, already assumed a mandatory private health insurance, a share of contributions for State schools and a network of private clinics that would slowly replace the National Health Service (NHS).

We do not think it is reasonable to dismantle the Welfare State, but it will certainly be necessary to rethink a system that gives everything to everyone, even to the rich people, and gives everything to all newcomers, thus inevitably reducing the possibility of providing care for the poor or the now proletarianized middle class.

Instead of singing Ode to Joy, or possibly even the International, it would be better to study new systems to ensure dignity, health and good education to the poor people, but also to fund them with ad hoc taxes and fees paid by the rich people.

In our Western ideologies, we are still at the “Four Olds” against whom the ferocious and callow Maoist Red Guards polemicized: “Old Customs, Old Culture, Old Habits and Old Ideas”.

Therefore, Brexit can have the effect of rethinking also the EU “old” classifications.

An EU thinking about the East only to “bring democracy” with bombs or to destabilize the whole area, believing – as happens to all fools – to do good, or possibly to pedantically follow the North American strategic interests, which are not those of Europe.

As a man of great intellectual calibre, namely Alain Finkielkraut, said, “if Angela Merkel had not let one million immigrants into Germany in 2015, there would have been no Brexit”.

Hence Britain’s mass perception of an EU destabilising the nation States that are part of Europe, probably to weaken the national political regimes, possibly in search of a supranational sovereignty that is sometimes shown in some mediocre products of mainstream culture.

Pending  Brexit,  the  EU  has  also  been  negotiating  with  Great

Britain, using its negotiating superiority to maximise its potential.

Besides maintaining the principle of the four freedoms (freedom of goods, people, services and capital), the EU wanted above all to ensure that Ireland, including Northern Ireland, remained in the EU’s trade system.

Certainly, Theresa May’s soft Brexit created great tensions within her government, thus leading to the resignation of Ministers Boris Johnson and David Davis. However, the geopolitical essence of the issue is that the hard Brexit wanted by Johnson – who triumphed in elections – is a structural rapprochement to the United States, while both Britain’s stay in the EU and soft Brexit make the country remain within the French and German strategic area.

Hence the recent electoral choice made by Great Britain implies a clear defeat for France and Germany.

President Macron had also threatened Great Britain to make it “take backseat” and trail behind if hard Brexit materialized. Hence there would be a British blockade of French fishing vessels in British waters.

The soft Brexit agreement was certainly unfavourable for Great Britain: it would no longer be free to make bilateral trade agreements and treaties with any country, without the EU authorization, with EU goods and services freely entering the UK, but not the other way round. We can imagine what would have happened to Britain’s balance of payments.

Moreover, British financial services would have had a limited chance of entering EU markets.

A slipknot.

What will the hard Brexit produce? In the meantime a sharp deterioration in the already severe economic situation in Europe.

Brexit is above all a trade war, nothing else. Probably, the “hard” Brexit will produce recession and stagnation in many European nations.

Probably the British scenario will stimulate the strong no-Euro and no-EU minorities in the Euro countries to strengthen and demand not intermediate goals, but “everything”, i.e. exit from the EU.

At least for some time, it will stop the tendency to transfer national powers to the EU and, above all, it will quickly undermine the power of the European Court of Justice vis-à-vis individual States.

The French-German project was to strengthen the traditional trade freedoms for the whole EU but, at the same time, to protect their “national champions” – and now Brexit is stopping this great operation.

Moreover, both Germany and France have always tried to “export” their labour market and welfare solutions to the rest of the EU, including to EU countries with much less tax revenue and much higher public debt, thus “damaging” possible European competitors and making their mergers & acquisitions operations in Southern Europe easier.

Currently this French-German project is over – and this is certainly not a bad thing.

Therefore, Brexit will favour a further separation between the Northern EU and the less developed Southern Euro area, not to mention the increasing separation between Central and Western Europe in terms of migration policy.

Germany can now use its differential with France to seek the support of smaller EU nations.

We will also have a medium-term scenario, which is very likely: the EU is losing much of its military potential and is no longer the second largest economy in the world, which would explain the much smaller EU budget – after Brexit – and the mounting of tension and contrast between the EU and the United States.

Furthermore, if Britain leaves the EU – as it will certainly do in the near future – it will increase Europe’s tendency to reach trade, energy and industrial agreements with the Russian Federation.

Following Brexit, the EU countries will be ever less able to make quick and effective strategic choices.

Hence Brexit is Britain’s acceptance of the fact that it wants and can play its own interests around the world, since the EU is not – if ever – a big player in the global geoeconomy.

If anything, it is a big protected market – and this is its essence, not some backup singers of Beethoven’s Ninth.

Considering that Great Britain has skilful ruling classes and brave people, it does not want to deal every step with the EU. It does not want to tie itself to a geopolitical project that it believes to have failed – and it is certainly not wrong. Finally, it does not want someone else in Brussels to prevent or favour its choices.

The EU is an assembly of accountants who believe they are a War Cabinet. The new Tory government is convinced that the faster Boris Johnson’s Brexit the more the EU will give in shamefully.

Certainly, Britain’s power projection that will materialize soon, with trade and financial agreements with the whole Commonwealth, Japan, South Korea and China will usher in a new phase of economic development in the country that, however, will be ever worse distributed.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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Austerity, corruption, and neglect: How the Greek railway became Europe’s deadliest

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Image source: Wikipedia

“Aren’t trains supposed to be safe?” This was the question on the minds of most Greeks after the fatal collision between a passenger and a freight train that took place on February 28th in the Tempi area of Central Greece. The crash cost the lives of 57 people, mostly young students returning home after the Clean Monday holiday. As it turned out, the trains in Greece were not safe at all. In fact, according to a 2022 report by the European Union Agency for Railways, Greece had the deadliest railway among 29 European nations even before the Tempi catastrophe.

The official inquiry into the disaster concluded that the station master had committed a series of critical errors that night; however it also highlighted that there were no safety systems in place to prevent or correct human errors. In the days following the catastrophe, the phrase “a serious accident was waiting to happen” was used many times by those working at the Greek railway.

Thanasis, 22, a driver for Hellenic Train, had the same opinion. Despite its name, Hellenic Train is a subsidiary of Trenitalia and is responsible for the operation of passenger and freight trains on the Greek railway lines. The state-owned Hellenic Railways Organization (OSE) is responsible for running and maintaining the lines as well as the accompanying infrastructure and systems (signals, stations, etc.).

That fateful night, Thanasis drove the IC62 passenger train from Athens up to Larisa, one station before the disaster. There, he changed shifts with his colleagues, who had to drive the IC62 to Thessaloniki. Approximately one hour later, they died from the collision. Thanasis learned about the accident on his way back to Athens.

“Shortly before we reached Thiva, we learned that something had happened because they called us from the Rentis train depot to ask if we were OK. At first, we did not give it much thought because we were told it was a derailment and derailments happen a lot. Afterwards, we learned that it was a head-on collision and that there were deaths. Shortly before we arrived in Athens, we began to see the first photos and videos [from the place of the accident],”he said.

According to the inquiry report, the absence of the European Train Control System (ETCS) played a central role in the disaster. ETCS is being used by the majority of European countries and it would have automatically stopped both trains after they entered a collision course. ETCS was installed gradually on Greek train engines from 2007 to 2018, but in order for it to be operational, the railway signals on the lines need to work.

However, copper thieves have been stealing cables from the railway lines for years. The theft and selling of copper are predominately dominated by criminal gangs called the “copper mafia”, but in some instances OSE employees have also been implicated. In 2017, a high-ranking OSE director and seven other employees were arrested after they were found to have taken tens of thousands of euros in bribes from these gangs. Due to its limited budget, OSE does not replace the stolen and damaged cables; as a result, the signaling system that is essential for the operation of ETCS is constantly out of order. The lack of signaling has resulted in the Greek railway relying on an obsolete system of station masters. This leaves no margin for human error, especially when all the traffic takes place on a single line, as was the case on the night of the Tempi disaster.

Another railway driver, who spoke on the condition of anonymity due to fear of reprisals, described how vulnerable the Greek railway system really is to criminal organizations taking advantage of it.

“There are extensive copper wire thefts. Even a few days after the accident, wires for the signaling system were installed in Katerini; they were stolen the same night, a few hours after installation. There is a serious problem. The system started to gradually get out of order,” he said. The driver also spoke of human smuggling rings active on the railway.   

During the last few years, the Greek railway system has become one of the main means of transport used by migrants and refugees attempting to reach Western Europe. This has attracted human smugglers, creating a dangerous environment for workers and migrants. In August 2022, three migrants were killed in their sleep near Drama after they got hit by a train.

“There is a trafficking problem within the organization (OSE), migrants have inside information such as the train and route numbers, they know each train’s destination and they are prepared. People have come into the cab and offered me 2.000 euros to hide them inside. Obviously I refused because I would be arrested.” stated the driver.

“Migrants sometimes hide even beneath the trains, when we find out, we immediately stop the train and call OSE, but they often tell us “What do you want us to do?”. Even the police do not come. If it arrives, it is usually just one run-down police cruiser with one police officer inside. Sometimes a train may have 90–100 people (migrants) on it,” he added.

Although copper theft and human smuggling are significant issues, the primary factor responsible for the decline of Greek railway is the severe budget cuts that have been implemented on OSE since 2010 as part of wider austerity policies. As a result, OSE gradually became underfunded and understaffed. It is telling that OSE went from employing around 6.000 people in 2010 to less than 1.000 people in 2021. This has led to many stations being left unmanned, while OSE employees sometimes have to work long hours, which makes them more prone to mistakes. Furthermore, the lack of funds means that damaged equipment and infrastructure cannot be easily repaired or replaced.

To make matters worse, the political clientelism that has plagued the Greek public sector for decades has also been present in OSE, with inexperienced individuals being given important positions within the organization simply because of their political ties. According to several reports in the Greek press, the station master charged with causing the Tempi tragedy was a political appointee of the ruling New Democracy party. He had been given the job in 2022 after a few months of training, despite being 60 years old and lacking prior experience.

Moreover, OSE seems to be afflicted by a culture of silence. Every OSE employee we tried to contact refused to talk, with some of them implying their upper-ups had forbidden them to speak publicly. A couple of weeks after the accident, this culture became evident during the visit of the ex-deputy minister of transportation, Michalis Papadopoulos, to the Larisa station. Papadopoulos, while addressing the press, made some inaccurate remarks regarding the station’s control board. When a station master stepped in and corrected the deputy minister, making him visibly uncomfortable, a high-ranking OSE director intervened, tapped the station master on the shoulder and coldly told him, “End it.” The station master complied and stopped talking at once.

A few days after the disaster, Prime Minister Kyriakos Mitsotakis referred to it as a “sacrifice” that would help the state to prevent similar disasters in the future. However, if someone roamed the streets during the almost daily large demonstrations in the weeks following the Tempi catastrophe, the word that he would see mostly written on placards and banners was “murder.” This shows that a sizable part of society did not attribute the accident to the convenient explanation of human error but considered the Greek state responsible for the dreadful condition of the country’s infrastructure, including its railway system.

Following the catastrophe, the Mitsotakis government, which managed to secure reelection in June with an impressive 41% of the vote, increased the OSE’s annual funding from 45 million euros to 75 million euros and accelerated construction work, with the goal of having ETCS and signaling installed on the majority of the Athens-Thessaloniki line by November 2023.

Nevertheless, the disintegration of the Greek state’s capacity after 13 years of austerity makes it impossible to close one gap without opening another. In early September, catastrophic floods in Central Greece washed away the new constructions and destroyed a large part of the old railway infrastructure, once again highlighting the authorities’ lack of preparedness.

As a result, the work now has to start from scratch. “It will probably take us many months to return the railway to the point it was 15 days ago [before the floods],” admitted the newly appointed Infrastructure and Transport Minister, Christos Staikouras, in a recent interview. “The work [on the railway] will have been completed by 2026,” he concluded, attempting to reassure the citizens. However, a lot of them will probably be skeptical of the minister’s reassurances

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Nurturing Sino-EU Ties through Multilateralism

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Considering the fact that relations between China and the EU are shifting, they will continue since China’s position as a crucial economic powerhouse for the EU cannot be understated, especially as the EU confronts a real and technical economic downturn. In the Eurozone, countries such as the Czech Republic, Lithuania, and Germany are experiencing a deceleration in economic growth, which requires immediate consideration. The primary reason for this is the industry-related crisis caused by the collapse of export operations on both domestic and global markets due to a lack of purchasing power.

If this mild downturn becomes a full-blown crisis, the economies of both the European Union and the United States could stagnate. Because of these challenges, the European Union (EU) must strike a fine balance between resolving the current crisis and accommodating U.S. demands. The recent summit of European Union leaders holds great importance as the EU determined its policy towards China. The EU’s economic prospects are highly dependent on developing strong ties with China.

When combined with China’s growing consumer market and massive expenditures in infrastructure, the European Union’s economy has a once-in-a-generation chance to rebound and thrive. The European Union (EU) stands to gain from closer economic connections with China due to the opportunities it presents for increased collaboration, broader trade, and the infusion of much-needed Chinese investment into the EU’s flagging industrial sectors.

Recognizing this undeniable potential, the EU must priorities capitalizing on the benefits of its partnership with China, whilst likewise making sure that the relationship remains mutually beneficial and sustainable. The path towards achieving such equilibrium, however, is fraught with obstacles, mainly due to external pressures from the United States. Notably, the United States has imposed tariffs and trade restrictions on a number of European products, creating financial challenges for European companies. These actions are frequently used as pressure to influence Europe’s approach to China.

The EU is in a precarious position, compelled to navigate an environment where financial goals, geopolitical issues, and common values intersect. Maintaining a delicate equilibrium is essential. The pressure exerted by the United States highlights the necessity for Europe to assert its own interests and independence in international affairs. It is essential that the EU devise an independent and principled strategy that protects its own interests while approaching China with a productive discussion.

European Council President Charles Michel’s recent statement that it is in the EU’s best interest to maintain “stable and constructive” ties with China has, in a sense, confirmed the continuation of EU-China relations. In a latest commentary, Josep Borrell, the EU’s high representative for foreign affairs, pointed to how the EU could modify its policy towards China. However, he advocated for “vigorous engagement” between the EU and Beijing.

Under the weight of US pressure, maintaining a delicate balance in EU-China relations requires careful handling. European leaders will have the opportunity to define the EU’s position on China at the upcoming EU summit, ushering in a future of balanced, constructive, and mutually beneficial engagement. It is essential that European leaders seize this opportunity and set a course that protects their economic interests and fundamental values. In this manner, the EU can promote stability, resilience, and sustainable growth in the face of changing global dynamics.

At this critical juncture, leaders must engage in exhaustive dialogues that incorporate the many facets of the EU’s relationship with China. The promotion of human rights should be coupled with economic considerations. Considerations such as trade disparities, rights to intellectual property protection, and the development of equitable market practices must be addressed in an open discussion. This strategy will ensure an equitable playing field for EU and Chinese businesses, fostering an environment conducive to healthy competition and long-term economic growth.

The foundation of Sino-EU relations should base on mutual interest and respect, multilateralism, and economic exchanges, and they should be exempt from illicit US interference and pressures. By navigating these complexities and forging a path that safeguards economic interests and fundamental values, the EU can promote stability, resilience, and sustainable growth in the face of changing global dynamics.

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China-Germany Win-Win Cooperation

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photo:Yao Dawei / Xinhua

The China-Germany cooperation exemplifies the transformative potential of collaboration based on mutual regard, shared objectives, and complementary strengths. This exceptional partnership has spawned a domino effect that extends beyond bilateral relations, inspiring other nations to pursue similarly mutually beneficial partnerships.

 As the world becomes more interconnected, countries can learn from the China-Germany model of cooperation, which fosters economic development, technological advancement, environmental stewardship, and cultural exchange. By adhering to the principles of win-win cooperation, nations can construct a more prosperous, sustainable, and harmonious global community.

China and Germany’s dynamic and mutually beneficial cooperation is a shining example of win-win collaboration on the global stage. Both nations have nurtured strong economic and diplomatic ties over the years, resulting in enormous advances and benefits for their respective societies.

Strong and coordinated global action is needed immediately to combat climate change and advance sustainable development. There is still a lot to be done, but China and Germany have already shown their dedication to environmentally friendly and low-carbon development. By aligning their strategies and exchanging best practices, they can expedite the transition to a low-carbon, sustainable economy.

China’s pledge to peak carbon emissions before 2030 and achieve carbon neutrality before 2060 shows its commitment to a deep low-carbon transformation of its economy and society. Through the International Climate Initiative (IKI) administered by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, the German Federal Government supports Sino-German climate change cooperation.

 Collaboration in areas such as energy efficiency, renewable energy, the circular economy, and sustainable transportation can lead the way for a greener future, mitigating the effects of climate change and nurturing ecological equilibrium.

China and Germany have established a strong economic partnership that has benefited both countries significantly. Germany’s main commercial partner is China, and vice versa, and this strong bilateral commerce has led to significant economic growth and employment creation. This collaboration has given German businesses access to the sizable Chinese market.

Notably, the exchange of products, services, and knowledge between the two nations has fostered innovation, productivity, and economic resiliency, thereby laying the groundwork for long-term cooperation. This commitment to cooperation has yielded an array of beneficial effects, strengthening the conviction that win-win partnerships can drive progress and prosperity in an interdependent world.

The dynamic economic partnership that has grown between the two nations is one of the pillars of China-Germany cooperation. Germany, known for its scientific prowess, inventiveness, and precision engineering, found a favourable market in China, with its enormous customer base and rapidly expanding economy.

On the other hand, China’s manufacturing expertise and devotion to infrastructure development have presented German businesses with incredible possibilities to expand their operations and enter new markets. Entrepreneurs from both nations could keep pursuing openness, inclusiveness, and win-win cooperation, as well as keep the stability of industrial and supply chains with high-level practical cooperation. This symbiotic relationship has allowed both nations to capitalize on their respective strengths, resulting in economic expansion and job creation for both countries.

China and Germany have also established cooperation in the fields of innovation and research, recognizing that advancements in these fields are crucial agents of economic and societal progress. Through joint research initiatives, academic exchanges, and institution-to-institution collaboration, both nations have been able to pool their intellectual resources, foster innovation, and address global challenges. This cooperation has not only led to revolutionary scientific discoveries, but it has also set the groundwork for future innovations in technology that will benefit all of humanity.

China and Germany have fostered cultural exchange and people-to-people diplomacy in addition to their economic and technological cooperation. By encouraging education exchanges, cultural events, and intercultural dialogue, both countries have built bridges of appreciation, understanding, and friendship. Not only do these interactions enrich the lives of individuals, but they also strengthen the bilateral relationship as a whole. They facilitate dialogue, eliminate preconceived notions, and set the groundwork for mutually beneficial relationships and respect.

By expanding on these accomplishments and upholding a spirit of mutual respect and shared objectives, the China-Germany partnership can continue to advance progress and inspire global collaboration.

The China-Germany model of win-win cooperation provides valuable lessons for nations seeking to forge prosperous partnerships. It emphasizes the significance of mutual respect, trust, and open communication as the foundations for productive collaboration. It also emphasizes the importance of recognizing and capitalizing on balance in strengths and resources, which allows nations to maximize the positive effects of cooperation.

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