Relations between Germany and Taiwan strengthened in 2022, despite Germany’s reluctant acceptance of Beijing’s One China Policy. Meanwhile, bilateral economic ties with both Taiwan and China have sparked discussions about Germany’s foreign policy goals and whether Berlin is reviving the antiquated diplomatic strategy known as Wandel durch Handel (“Change through Trade”) amidst Europe’s growing security vulnerabilities. In June 2023, Germany and the Chinese state-owned firm COSCO signed a contract for the sale of shares in Hamburg’s seaports. Chancellor Olaf Scholz’s visits to Taiwan, once unimaginable , were strategically timed to coincide with the contract. Two months later, Germany established an agreement with TSMC, Taiwan’s largest semiconductor company.  Prevailing narratives among policy circles view Wandel durch Handel as a relic from Germany’s regulatory …