"EV tariffs will harm Germany and China, warns Chinese minister"

The Chinese commerce minister has raised concerns over proposed EV tariffs, warning that they could negatively impact both Germany and China. The tariffs are seen as a threat to economic cooperation and could disrupt the electric vehicle industry in both nations, potentially harming trade relations and growth within these key sectors.

China's commerce minister stated that the EU's decision to impose tariffs on electric vehicles will significantly disrupt trade and investment relations, negatively affecting both China and Germany.

During discussions with German Vice Chancellor and Economic Minister Robert Habeck, Wang Wentao expressed his hope for a swift resolution adhering to WTO guidelines to prevent further economic and trade tensions between China and the EU, as noted by the Ministry of Commerce's statement on Wednesday.

The European Commission is preparing to introduce additional tariffs of up to 35.3% on Chinese-made EVs, in addition to the existing 10% import duty on cars. Wang is in Europe to engage in discussions regarding the EU's anti-subsidy investigation into Chinese-made EVs ahead of a potential vote on further tariffs.

Wang expressed his hope that Germany would act in its own best interest and encourage cooperation between the European Commission and China. Habeck emphasized Germany's commitment to free trade, its openness to Chinese automotive and parts investments in Europe, and pledged to advocate for a resolution with the European Commission to prevent trade disputes.

Wang also had a meeting with Wolfgang Schmidt of the German Chancellery in Berlin, where he reiterated China's stance on resolving the anti-subsidy case through dialogue and negotiations, according to a separate statement from China's Ministry of Commerce. Wang expressed China's deep disappointment over the EU's disregard for China's efforts, its insistence on imposing high countervailing duties, and the swift rejection of the industry's proposed resolution. Wang reaffirmed China's determination to continue pursuing dialogue and negotiations until the very end.

Wang urged Germany, as a key EU member, to take a leadership role in encouraging the European Commission to demonstrate political will and collaborate with China to resolve the issue properly, as per a second statement from the Ministry of Commerce.

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Source: Reuters‍