Europe’s Competitiveness Problem + Germany’s High-Stakes China Trip + APAC Confidence vs Europe’s Caution
Dear Readers,
Welcome to the Diplomacy Berlin Newsletter.
Berlin never sits still. You see it in its streets, its buildings, its politics, and in the way the city constantly negotiates between history and whatever comes next. That same spirit runs through this week’s stories.
We begin with Christoph Rauhut, Berlin’s State Conservator, who reminds us that heritage here is less about freezing the past and more about creating a dialogue across time. In a city shaped by ruptures, each building carries a piece of identity, and each renovation becomes its own diplomatic act.
That idea of negotiation carries into our political landscape as well. Germany is weighing tougher deportation rules while trying to keep integration fair and humane. Europe is rethinking its entire trade model as global competition sharpens. Berlin’s vice chancellor is in China, navigating a relationship that has become both indispensable and increasingly fraught. And Luxembourg’s finance minister captures Europe’s anxiety about staying competitive as others move faster.
Even in the business world, the contrast is striking: FedEx reports growing confidence in APAC while European SMEs, including Germany’s Mittelstand, remain cautious. And the latest episode of Long Story Short lays out why China has suddenly become the place everyone needs to talk to whether you’re sitting in Brussels or Washington.
Taken together, these pieces show a world in motion and a Germany trying to find its footing within it. Heritage, trade, migration, diplomacy all of it comes down to how we adapt while staying true to who we are.
Welcome to this week’s edition. Let’s dive in.
With best regards,
Sigrid Arteaga
“Heritage as Dialogue” - A Conversation with Christoph Rauhut, Berlin’s State Conservator
Berlin is a city of layers, ruptures, and new beginnings. Between Classicism, the Wilhelminian era, and Bauhaus, between the Wall and modernity, its urban landscape mirrors political, social, and cultural transformations.
Christoph Rauhut, State Conservator and Director of the Berlin Heritage Authority, is responsible for researching, registering, and maintaining the city’s official list of protected monuments. His office advises property owners, develops professional standards, and coordinates cooperation with Berlin’s districts – and is also the point of contact when it comes to listed buildings owned by embassies or federal institutions.
We spoke with him about the diplomatic dimension of architectural heritage, international perspectives, and the courage to embrace diversity.
Photo: ©Landesdenkmalamt Berlin, Anne Herdin
Berlin is known as a city of ruptures – historical, architectural, and mental. What do the city’s buildings reveal about its identity, and what role does monument preservation play in keeping that identity visible?
Berlin’s architectural heritage is defined by an extraordinary diversity. In hardly any other European capital do so many layers of history coexist so closely from the Middle Ages and the civic architecture of the 19th century to the modernism of the GDR. These ruptures are what shape the city’s character. Our task is to preserve this diversity not as nostalgia, but as an expression of a vibrant, open urban society. Berlin is not a homogeneous city, and that is its strength. Each era has left its traces, and together they form a rich, polyphonic whole. For me, monument preservation means enabling this dialogue across time while addressing contemporary challenges such as climate protection and new uses for historic structures.
Many embassies in Berlin operate or reside in listed buildings places that breathe history and are, at the same time, living diplomacy. What challenges and opportunities arise when international actors engage with historic heritage?
That’s a particularly fascinating field. When alterations are made to listed embassy buildings, our office is directly involved. Such measures always take place within the framework of the Vienna Convention, which governs the handling of diplomatic property.
In practice, this means we advise, accompany, and work together to find solutions that meet both the functional needs of the embassies and the requirements of monument protection. It usually works very well – good architects know how to build with respect for history. And in a way, this collaboration is diplomacy in miniature: it’s about respect, dialogue, and bringing differences into harmony.
Berlin is changing rapidly – new districts, high-rise plans, renovations. How do you strike the balance between authenticity and renewal, between preservation and progress?
Preservation doesn’t mean that everything has to stay the same. Cities live through change, and our goal is to shape that change without losing historical value. When infrastructure needs to be modernized or climate adaptation measures introduced, we discuss how interventions can be implemented sensibly.
Topics such as solar energy on rooftops, heat protection, or sustainable building materials have long been part of heritage conservation. We develop standards and advise property owners, district administrations, and the Senate. Ultimately, it’s about reconciling public interests – historical responsibility, ecological reason, and urban development.
Finally, a personal question: If you could show a newly arrived ambassador one place to understand the spirit of Berlin, where would you take them and why?
I’d choose the International Congress Center (ICC). It’s a striking example of postwar international architecture – a symbol of openness and technological optimism. Built during the Cold War as a venue for open and free dialogue, it represents Berlin’s global outlook and willingness to engage. Today, it raises the question of how we treat the architectural witnesses of the recent past. The ICC is grand, bold, a little excessive – and therefore quintessentially Berlin. It embodies what defines this city: courage, contradiction, cosmopolitanism, and the willingness to keep rethinking history.
Germany Moves to Step Up Deportations Amid Migration Debate
Germany is preparing new measures to increase deportations of rejected asylum seekers, including a controversial discussion about possible returns to Syria. The government argues that current deportation rates are too low and wants to streamline procedures by reducing legal barriers and expanding detention capacity. Supporters see this as a necessary response to rising migration and pressure from opposition parties, while critics warn that returning people to conflict zones like Syria could violate international law and human rights obligations. The debate has intensified as migration remains one of the most politically charged issues in Germany, shaping both national and EU-level policymaking.
This issue sits at the heart of Germany’s domestic and foreign policy crossroads. Domestically, it reflects growing public concern over migration management and the rise of right-wing populism, which is pushing mainstream parties to appear tougher on immigration. Internationally, it forces Germany to navigate legal and ethical boundaries under the Geneva Refugee Convention while balancing humanitarian principles with enforcement. The policy direction taken now will influence Germany’s broader stance within the EU on migration reform and its reputation as a rights-based democracy.
Read more in detail on DW’s website.
Europe’s Trade Wake-Up Call: Three Lessons Reshaping EU Strategy
The Center for European Reform (CER) piece outlines three tough but necessary lessons Europe must confront as global trade becomes more politicised and competitive. First, relying on pure free-trade principles is no longer enough as the U.S. and China use state-backed industrial policies to support their own firms. Second, economic security and trade are now inseparable — Europe must protect itself from overdependence on single suppliers, especially in critical sectors like energy, raw materials, and technology. Third, EU countries need far better coordination, because fragmented national responses weaken Europe’s bargaining power and slow down its ability to adapt. Overall, the article argues that Europe needs a smarter, more strategic trade policy if it wants to remain competitive in a world where geopolitics increasingly shapes economics.
Germany sits at the center of this shift. As Europe’s largest exporter and the country most reliant on global markets, these lessons strike directly at the weaknesses of the German economic model: heavy dependence on China, energy vulnerabilities exposed after Russia invaded Ukraine, and slow adaptation to new industrial realities. Berlin’s recent push for supply-chain diversification, green tech investment, and tighter screening of foreign investments reflects exactly the concerns raised in the article. How Germany responds will ultimately shape whether Europe can build a coherent, resilient trade strategy or remain exposed to global shocks.
Read the full analysis on the Center for European Reform.
Long Story Short – From the EU to Trump: Why is Everyone So Eager to Meet with China?
This episode of Long Story Short, hosted by Evi Kiorri, dives into why both the European Union and the United States are scrambling to hold talks with China at the same time. The focus is on Beijing’s new export controls on rare earths and permanent magnets, materials that Europe needs to build electric vehicles, defence equipment, renewable energy systems, and digital technologies. Because China processes nearly all of the world’s critical minerals, its tightened licensing rules have left European companies waiting weeks for approvals and have raised fears about supply-chain disruption. With EU leaders warning that the bloc is dangerously dependent on China, Brussels is trying to calm tensions while quietly preparing a new strategy to diversify suppliers and reduce reliance on Chinese materials. Meanwhile, Donald Trump is meeting Xi Jinping for similar reasons, showing that both Washington and Brussels are trying to secure access before restrictions deepen.
For Germany, it is at the center of this story because its entire industrial model relies on the exact materials now caught in China’s export controls. German automakers, machinery companies, and renewable-energy firms depend heavily on Chinese rare earths to keep factories running. Berlin’s ability to deliver on its green transition, defence modernization, and industrial revival depends on securing these inputs, making China a critical and uncomfortable partner. The podcast essentially highlights Germany’s biggest strategic vulnerability: the country cannot afford a rupture with Beijing, yet staying dependent puts its economy and security at risk.
Listen to the full podcast on Spotify.
Luxembourg Finance Minister on Europe’s Trade and Competitiveness
In this Bloomberg interview, Luxembourg’s finance minister Gilles Roth argues that Europe must urgently sharpen its competitiveness and rethink how it engages with global trade. He warns that the world is drifting toward more fragmented trading blocs, and the EU cannot afford to be caught unprepared. Roth stresses that Europe needs to “focus on itself” by strengthening its industrial base, simplifying regulations, and investing in innovation so that companies aren’t tempted to shift production outside the continent. He also touches on the debate around using Russia’s frozen assets, reflecting the broader geopolitical pressures shaping Europe’s economic decisions.
For Germany, Roth’s comments hit directly on familiar pressure points. As Europe’s biggest economy and its traditional export powerhouse, Germany’s slowdown has amplified worries about the EU’s overall competitiveness. High energy prices, ageing infrastructure, and slow digital progress mirror the structural weaknesses Roth describes. Berlin’s recent decision to boost public investment and modernise its industrial base is essentially a response to the same challenges he warns about. And his point about avoiding global trade fragmentation resonates strongly with Germany’s situation: if Germany fails to adapt and lead, the entire EU risks losing ground to faster-moving competitors like the U.S. and China.
Watch in detail on Bloomberg for a clear take on Europe’s competitiveness challenge.
- America’s Quasi Alliances: How Washington Should Manage Its Most Complicated Relationships. foreignaffairs.com
- Atrocities Against Civilians in Sudan Require World’s Attention, U.N. Says. nytimes.com
- In Brussels, the far right can no longer be ignored. politico.eu
- How Venezuela Fits Into Trump’s Strategy for Latin America. foreignpolicy.com
- „Shadow ships“ take pole position on the Northern Sea Route. thebarentobserver.com
- Dire warnings over aid and hunger following RSF’s capture of Sudanese city. theguardian.com
Germany’s Vice Chancellor Heads to China Amid Growing Tensions
This DW piece covers Vice Chancellor Lars Klingbeil’s trip to China at a moment when the relationship is strained on almost every front — trade, technology, and geopolitical alignment. Klingbeil is trying to keep dialogue open while pushing Beijing on market access, fair competition, and China’s recent export controls on critical minerals. The visit comes as German companies face rising pressure in the Chinese market, and Berlin works to reduce strategic dependencies without disrupting one of its most important trading relationships.
For Germany, the trip reflects a delicate balancing act: staying economically engaged with China while signaling that Europe will defend itself against unfair practices. It also highlights the differences in approach within the German government — for example, Foreign Minister Johann Wadephul had previously postponed his own China visit, and Chancellor Friedrich Merz is under pressure to clarify Germany’s overall China strategy. Klingbeil emphasizes maintaining dialogue and addressing sensitive topics like rare earth dependencies, Taiwan, and industrial overcapacity, aiming to translate conversations into concrete collaboration without compromising strategic interests. It’s a reminder that Germany’s prosperity and industrial future are still deeply tied to China, even as political trust continues to erode.
Read the full story on DW’s website.
Logistics Confidence Rising in APAC While European SMEs Remain Cautious
The article highlights a split in global business sentiment: SMEs in the Asia-Pacific region are growing more confident about trade, logistics, and cross-border expansion, while European SMEs — especially in major economies like Germany — remain hesitant. APAC companies are increasingly leveraging digital tools, e-commerce, and supply-chain diversification, whereas European firms cite high energy costs, inflation, and geopolitical uncertainty as reasons for their caution. According to a recent poll initiated by FedEx, APAC’s agility is giving it momentum, while Europe risks falling behind unless it accelerates digitalisation and strengthens supply-chain resilience.
Germany’s Mittelstand finds itself exactly in this position — squeezed by rising costs, a continued economic slowdown, and a global market moving faster than Europe’s regulatory and logistical environment. The contrast with APAC underscores Germany’s broader competitiveness challenge: German SMEs must adopt digital logistics, diversify suppliers, and adapt to a more volatile trade landscape if they want to remain competitive. The piece echoes wider concerns about Germany’s sluggish productivity, slow bureaucracy, and dependency on fragile supply chains — issues the government is now trying to address through major investment and industrial policy shifts.
Read the article in detail on SupplyChaindigital.com.
The Arctic Institute – Center for Circumpolar Security Studies
The Arctic Institute is one of the most insightful organizations tracking how the Arctic is changing politically, militarily, and environmentally. It offers sharp analysis on security dynamics in the High North, great-power competition, climate impacts, and NATO’s growing role in the region. It’s a valuable follow for Germany-focused watchers because Berlin is expanding its Arctic footprint through new defence cooperation with Iceland and a stronger NATO presence in the North Atlantic. The Institute’s research helps make sense of the strategic environment Germany is stepping into, and why the Arctic now matters for European security and foreign policy. Visit their website to know more about the Arcitc Institute.
Berlin Foreign Policy Forum 2025
On 25 November 2025, the Berlin Foreign Policy Forum will bring together leading policymakers, diplomats, and experts to discuss how domestic challenges and global tensions are reshaping Germany’s and Europe’s foreign policy priorities. With sessions covering global cooperation, European cohesion, development policy, and transatlantic relations, the Forum offers a focused look at the key strategic questions shaping today’s international landscape. The full program will be livestreamed for audiences worldwide. For program details and itinerary, see the official Körber-Stiftung event page.
Legal Disruption Conference 2025 – Legal Tech & Metaverse
On 20 November 2025, the BSP Business and Law School will host the Legal Disruption Conference, an immersive event exploring how AI, Legal Tech, Extended Reality, and emerging metaverse applications are reshaping the legal profession. Featuring expert keynotes, panel discussions, startup pitches, and interactive demos, the conference brings together legal professionals, researchers, technologists, and students interested in the future of digital legal practice. Participation is free and open to innovation-minded attendees. For program details and itinerary, see the official AllEvents listing.
Integration and Naturalisation of Refugees and Migrants
The two-day conference at ProjektZentrum Berlin, hosted by the Expert Council on Integration and Migration (SVR) with support from Stiftung Mercator, brought together leading researchers and practitioners to examine how naturalisation policy is shaped in Germany. Opening remarks by Dr Jan Schneider set a thoughtful tone, and panels featured experts such as Prof Dr Christina Zuber, Dr Marie Walter-Franke, and Dr Hakan Yücetas, who highlighted how bureaucracy, political culture, and administrative discretion influence citizenship decisions.
Day 1 explored the politics behind citizenship law, including debates over dual citizenship and the discretionary role of street-level bureaucrats. Presenters emphasised how local political climates and opaque procedures can create inconsistencies, leaving applicants navigating complex and often overwhelming processes. Day 2 focused on lived experiences, looking at political participation among newly naturalised Syrians, the administrative hurdles refugees face when proving identity, and how citizenship interacts with integration and mobility over time.
The conference offered both insight and perspective. It was striking to see how closely policy, administration, and personal experience are intertwined, and how small procedural choices can have significant real-world consequences. SVR’s convening role — combining rigorous research with practical dialogue — underscored the importance of evidence-based, humane citizenship policies. For anyone engaged in migration and integration policy, the event highlighted both the challenges and opportunities for making naturalisation more fair, transparent, and accessible.
Bandol Sur Mer is one of those small Berlin restaurants that punches far above its size. Tucked away on Torstraße, it serves a tasting menu that leans French but isn’t afraid to wander bold flavors, tight execution, and a level of creativity you’d expect from a much bigger kitchen. The space is intimate, almost understated, which makes the food stand out even more. It’s the kind of place where you settle in, trust the kitchen, and let the evening unfold plate by plate. Perfect for a slow dinner, a celebration, or simply when you want to be reminded of how good Berlin’s dining scene can be.
If you’re looking for something special this season, Marsano Berlin’s Advent wreaths and Christmas collection are a perfect start. Elegant, handcrafted, and warm, each piece carries Marsano’s signature attention to detail, making even simple decorations feel thoughtful. Visiting in person is a must — seeing the wreaths, arrangements, and ornaments up close really brings the festive atmosphere to life. Whether for your home or as a personal gift, it’s an experience worth having yourself.