China and Germany agree to work on excess steel capacity

German Chancellor Angela Merkel and Chinese President Xi Jinping discussed overcapacity in global steel markets and agreed on Saturday to work on solutions within the G20 group of industrialized countries, Merkel's spokeswoman said.

In a phone call, the two recently re-elected leaders highlighted the close ties between the two countries, which are facing projected US steel and aluminum tariffs, and agreed to deepen their strategic partnership.

They also highlighted the importance of multilateral cooperation in global trade, a decisive response to accelerating the transition from multilateralism and institutions from the United States under President Donald Trump.

Chinese state news agency Xinhua clarifies that Xi told Merkel that both countries should "become supporters of a new international relationship" and become cooperative partners despite their ideological differences, and cooperation will move forward under the Belt and Road Initiative. ...

"The relationship between China and Germany will steadily continue as long as they adhere to equality and mutual respect, understand and care for each other's core interests and core issues, and properly monitor and resolve their differences," Xinhua said, attributing C's comments.

US officials said they would look to work with like-minded countries in the leaders of the G20 financial group early next week in Argentina. Merkel said on Saturday that Germany's trade surplus is narrowing due to rising domestic demand, and the government will continue to try to support this trend.

German Economy Minister Peter Altmeier will visit Washington this week to push for an exemption from US steel and aluminum tariffs as part of a broad push by the European Union to lift US sanctions. German Finance Minister Olaf Scholz will discuss this issue at the G20 meeting in Argentina with US Treasury Secretary Steven Mnuchin.

Merkel said on Friday that the planned US tariffs violate World Trade Organization principles and the dispute should be resolved through negotiations if possible. Merkel invited the Chinese government to visit Berlin for official government consultations, and Xi also invited Merkel to visit China.