Germany in the EU-China trade crossfire

European Union's tariffs on Chinese EVs havesparked a debate among EU nations regarding potential harm to the EU's automotive industry. The most vocal among them is Germany, a country heavily dependent on China for trade.

Major German players, including BMW & Volkswagen, have voiced concerns over EV tariffs on China. A recent report by a business body reveals scepticism regarding tariffs, terming it as 'counterproductive.' The survey revealed that falling prices and weak demand continue to plague German companies invested in China.

Maximilian Butek, chief representative at Delegation of German industry & commerce in Shanghai, said in a statement to AFP, 'The industry also made quite clear statements that tariffs as suggested now by the EU will not increase competitiveness of the automotive industry and therefore we rather advocate for investing into the competitiveness of the European Union rather than trying to protect the auto industry. And Imean you cannot protect the automotive industry only in the European Union if they are all over the world, in all global markets.'

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China represents the world's largest car market and the most advanced in EV production owing to its raw material supremacy. China is also one of Germany's top trading partners. But the recent domestic slowdown and subsequent price wars have dented profits for all major manufacturers. EU's EV tariffs have added to China's troubles. EU has accused China of unfair trade practices & undercutting Europe's manufacturers.