China-Germany relations shaken by Dalai Lama row

Source: Forbes.com
BERLIN (XFN-ASIA) - China called off a trip to Beijing by Germany's finance minister in the latest round of a battle over the Dalai Lama's visit to Berlin, German media said today.

The finance ministry said late yesterday that Peer Steinbrueck's visit set for next month was called off due to the 'very busy schedule' of China's new finance minister, Xie Xuren.

But German media quoted diplomats as saying the real reason was lingering Chinese anger at Chancellor Angela Merkel's meeting with the Dalai Lama in Berlin in September.

China strongly protested over the first meeting between a German chancellor and the exiled Tibetan spiritual leader, warning it would disrupt relations.

The fallout from the visit was blamed for China's withdrawal from a planned meeting of world powers on the Iranian nuclear crisis in Berlin in October, forcing its cancellation.

It also axed an annual event scheduled for December in Beijing to discuss human rights.

China last week urged Germany to take responsibility for repairing ties.

Foreign ministry spokesman Liu Jianchao said last week 'some difficulties' had emerged in the relationship between the two countries due to Merkel's meeting with the Dalai Lama.

'We hope Germany can take concrete steps to remove the negative impact of its erroneous act so that bilateral relations can move forward on a rapid and sound track,' he said.

In rare public criticism of his predecessor, former chancellor Gerhard Schroeder said Merkel had made a 'mistake' in meeting the Dalai Lama.

'Some recent situations have hurt Chinese people's feelings, and I regret it. I am not happy with some of our government's recent moves,' Schroeder said in a speech in China, according to the state-run China Daily newspaper.

Merkel has taken a tough stance on human rights in China, raising the issue with Chinese officials during her visit to the country in August.

German media expressed alarm at the new strain in relations.

Die Welt newspaper carried a front-page picture of the cover of Chinese magazine Liaowang. The Chinese magazine portrayed an unflattering photograph of Merkel above the headline 'The Mysteries of Merkel's China Policy.'

Financial Times Deutschland said relations between the two countries were heading for 'a diplomatic ice age' and hitting trade relations between the countries.

China is Germany's biggest trade partner in the Asia-Pacific region.

The rapidly growing Chinese economy is set to overtake Germany as the world's third largest by the end of 2007.

The Dalai Lama's Berlin trip was just one of several recent encounters with world leaders that have enraged China.

US President George W Bush met him last month in Washington, where the US Congress bestowed on him the Congressional Gold Medal -- the highest US civilian award.