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Why China warns of adverse impact from EU EV Tariffs on Germany and China
Photo Credit: Reuters
China’s Commerce Minister, Wang Wentao, has expressed significant concern regarding the European Union’s impending tariffs on electric vehicles (EVs), emphasising that such measures would “seriously interfere” with international trade and investment collaboration, ultimately negatively impacting both China and Germany.
During discussions held on Tuesday, September 16, with German Vice Chancellor and Economic Minister Robert Habeck, Minister Wang articulated a desire for a resolution aligned with World Trade Organisation guidelines, urging for prompt action to mitigate any escalation in economic tensions between China and the EU.
Reports indicate that the European Commission is poised to propose final tariffs of up to 35.3% on EVs manufactured in China, in addition to the existing 10% import duty on automobiles. Minister Wang’s visit to Europe is timely, coinciding with deliberations surrounding the EU’s anti-subsidy investigation into Chinese-produced EVs and anticipated upcoming votes regarding these additional tariffs.
Minister Wang highlighted the necessity for Germany to act in its own interests, advocating for the European Commission and China to engage collaboratively. Vice Chancellor Habeck reinforced Germany’s commitment to free trade, welcoming Chinese automobile and parts manufacturers to invest in the European market. He pledged to encourage the European Commission to pursue a viable resolution with China to prevent trade conflicts and maintain cooperative relations.
Further discussions were held with Wolfgang Schmidt from the German Chancellery, where Minister Wang reiterated China’s commitment to achieving a proper resolution regarding allegations of subsidy misapplication through dialogue. Wang expressed disappointment at the perceived dismissiveness of the EU towards China’s initiatives and proposals, which he believes could have alleviated tensions.
In concluding remarks, Minister Wang emphasised China’s determination to continue consultations until an amicable solution is attained, underscoring the pivotal role of Germany as a key EU member in facilitating this process.
In light of the ongoing discourse, it remains imperative for both China and Germany to collaboratively navigate these trade challenges while adhering to established international trade norms.
