Chinese Commerce Minister warns EU EV tariffs will harm China-Germany trade relations

In a series of high-level discussions with German officials, Chinese Commerce Minister Wang Wentao has voiced strong opposition to the European Union's proposed tariffs on electric vehicles (EVs) imported from China. The talks, which took place on Tuesday, highlighted the growing tensions between China and the EU over trade policies in the rapidly expanding EV market.

Minister Wang met with German Vice Chancellor and Economic Minister Robert Habeck, as well as Wolfgang Schmidt of the German Chancellery, to address the EU's anti-subsidy case against Chinese-made EVs. The meetings come at a critical juncture, as the European Commission is reportedly on the verge of proposing final tariffs of up to 35.3% on EVs built in China, in addition to the EU's standard 10% car import duty.

During his talks with Habeck, Wang emphasised that the imposition of such tariffs would "seriously interfere" with trade and investment cooperation between China and Germany. The Chinese Commerce Ministry released a statement early Wednesday, quoting Wang as saying he hoped to reach a solution in line with World Trade Organization (WTO) rules as soon as possible, aiming to avoid an escalation of China-EU economic and trade frictions.

Add WION as a Preferred Source

Wang urged Germany to consider its own interests and encourage the European Commission to work collaboratively with China. In response, Habeck reportedly expressed Germany's support for free trade and welcomed Chinese auto and parts companies to invest in Europe. The German minister also pledged to urge the European Commission to find an appropriate solution with China and make every effort to avoid trade conflicts.

In a separate meeting with Wolfgang Schmidt, Wang reiterated China's stance on resolving the anti-subsidy case through dialogue and consultation. He expressed deep disappointment over the EU's decision to move forward with high countervailing duty rates, despite China's efforts to find a resolution. The Chinese minister stated that the EU had hastily rejected a package solution proposed by the Chinese industry.

Wang emphasised that China would not abandon its efforts and would continue to seek consultations "until the last moment." He called on Germany, as a core member of the EU, to take a leading role in urging the European Commission to show political will and work with China to properly resolve the case.

The discussions in Germany are part of Wang's broader European visit, which aims to address the EU's anti-subsidy case against Chinese-made EVs ahead of a crucial vote on additional tariffs. The timing of these talks underscores the urgency of the situation, as both sides seek to navigate the complex landscape of international trade in the rapidly evolving EV sector.

The proposed EU tariffs come as Chinese EV manufacturers have made significant inroads into the European market, raising concerns among European automakers about competition and market share. However, the potential tariffs have also sparked debates about their impact on consumer choice, the affordability of EVs, and the broader goals of transitioning to cleaner transportation options.

China's strong reaction to the proposed tariffs highlights the importance of the EV industry to its economic strategy and export ambitions. As the world's largest EV market and a major producer of electric vehicles and components, China views any barriers to its EV exports as a significant threat to its industrial policy and global competitiveness.

The outcome of these discussions and the EU's final decision on EV tariffs could have far-reaching implications for the global automotive industry, trade relations between China and the EU, and the broader landscape of international economic cooperation. As the situation continues to evolve, stakeholders on all sides will be closely watching for any signs of compromise or potential escalation in this high-stakes trade dispute.

The talks between Chinese and German officials underscore the delicate balance that European countries, particularly Germany with its strong automotive sector, must strike between protecting domestic industries and maintaining open trade relations with China, a crucial market and manufacturing hub for many global companies.