New Delhi

The trade war between China and the European Union continues to build. In the latest update, China is looking to convince Germany's car manufacturers with potential benefits if they can persuade the EU to drop tariffs on Chinese EVs.

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China currently imposes a 15 per cent fee on passenger vehicles from Germany. The tariff-hit country is considering floating the fees in exchange for scrapping planned EV levies on its imports.

China's Commerce Minister Wang Wentao hinted at the possibilities during a meeting with Germany's Vice Chancellor Robert Habeck on Saturday. Germany has been vocal about the potential threat to business if the EU goes ahead with these tariffs. Germany also faces a threat from China's proposed tariffs on EU pork imports.

German Chancellor Olaf Scholz had earlier underscored the government's wish for a favourable solution. China and the EU are currently under discussion regarding tariffs. China must address these disputes, as Canada joins the league of countries moving against its countries trade tactics.

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This also reflects China's tactics to persuade the EU against these tariffs. While proposed duties on EU pork imports are underway, China is also trying the backdoor to squash trade tensions with the EU. China is already facing growing scrutiny from the US regarding 'overcapacity' concerns.