BERLIN The German cabinet is to pass its long-promised China strategy on Thursday, two government sources told Reuters on Wednesday.

Chancellor Olaf Scholz's government last year ordered a rethink on how Germany interacts with China, its biggest trade partner but also viewed by Berlin as an increasingly assertive competitor and strategic rival.

Scholz has repeatedly emphasised "derisking" Germany's relationship to China, thereby reducing dependencies on the country gradually rather than decoupling from the Chinese market.

Among the changes under consideration is the screening of investments by German companies doing business in China to protect the flow of sensitive technology and know-how.

(Reporting by Andreas Rinke, Writing by Friederike Heine, Editing by Miranda Murray)