As trade tensions between the European Union (EU) and China escalate over the EU's imposition of high tariffs on Chinese electric vehicles, Germany has effectively taken China's side following Spain and Italy. Germany, whose domestic automakers have extensively expanded into China, has so far emphasized a negative stance toward the EU's tariff hikes on Chinese electric vehicles.
According to China's Ministry of Commerce on the 18th, Robert Habeck, Germany's Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, told Wang Wentao, China's Minister of Commerce, who visited Berlin the previous day, "Germany supports free trade and welcomes investments by Chinese automobile and parts companies in Europe," adding, "We do not support additional tariffs on Chinese electric vehicles."
On the same day, Wolfgang Schmidt, Head of the German Federal Chancellery (Minister), who met Minister Wang, said, "Germany strongly hopes that the EU and China will appropriately resolve the electric vehicle issue through dialogue and negotiations, and has always believed that additional tariffs are never the way to a solution," adding, "We have communicated with the European Commission several times on this matter," the Ministry of Commerce reported.
Minister Wang said, "China feels deeply disappointed but will not give up efforts and will continue negotiations until the last moment," adding, "As a core member of the EU, Germany is hoped to take the lead and play an active role in urging the European Commission to show political will and properly resolve this issue."
Last month on the 19th, the EU announced a draft of definitive anti-subsidy tariffs raising the tariff rate on Chinese electric vehicles from the current 10% to between 27.0% and 46.3% over the next five years. It is expected that EU member states will vote on whether to implement the definitive anti-subsidy tariffs on the 25th of this month (local time). For the vote to pass, at least 15 member states representing more than 65% of the EU's total population must approve.
China is working to sow division by contacting individual EU member states.
Spain, the second-largest automotive industry in the EU, effectively shifted to China's side following Prime Minister Pedro Sanchez's visit to China on the 9th. Italy, during a meeting with Minister Wang on the 16th, stated that it "requested the European Commission to avoid any disruption to China-EU economic and trade cooperation due to (tariffs on China)." Italy, following Prime Minister Giorgia Meloni's visit to China in July, secured commitments from China on cooperation in electric vehicles, artificial intelligence (AI), and export expansion.
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