China is reportedly seeking support from Germany to withdraw the European Union's (EU) electric vehicle tariff hike by proposing tariff reductions on high-displacement vehicles.
On the 24th (local time), Bloomberg News reported that Wang Wentao, China's Minister of Commerce, met with Robert Habeck, Germany's Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, in Beijing last weekend and hinted at such a proposal. Habeck is the first senior European official to visit China since the EU announced plans to raise tariffs on Chinese electric vehicles up to 48% starting this November.
Since the EU Commission announced its tariff increase plan, China has indicated its intention to impose a 25% tariff on high-displacement vehicles imported from the EU. The current tariff rate is 15%. If tariffs are actually raised, German automakers such as Mercedes-Benz and BMW are likely to be hit hardest.
Some sources said China aimed to advance negotiations through discussions and attempted to exploit divisions among member states. The EU's tariff measures on Chinese electric vehicles will take effect from December 4, but must be approved by a qualified majority vote of the 27 member states by November to be finalized.
Germany has already expressed a negative stance on the EU's tariff hike plan and, as the EU's largest economy, can pressure other member states. On the 24th, German Chancellor Olaf Scholz emphasized at a business lobby meeting in Berlin that the government wants negotiations and stated, "Serious moves and progress from the Chinese side are clearly necessary."
Regarding China's tariff-related proposal, German and Chinese authorities refused to confirm its authenticity, Bloomberg reported. However, Deborah Elms, director of the Asia Trade Centre, explained, "The EU can postpone tariff imposition at any time until negotiation results are reached," adding, "If both sides show progress toward a result, it is possible to stop the clock."
After completing his visit to Beijing and arriving in Shanghai, Vice Chancellor Habeck said in a statement that he conveyed to Chinese officials the message that "the EU's door is open for discussions on tariffs concerning Chinese exports."
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