German minister warns China over tariffs amid Beijing's resistance
Federal Minister for Economic Affairs Robert Habeck is visiting Beijing to try to negotiate a compromise on electric vehicle tariffs. However, the Chinese side is not inclined to compromise. Meanwhile, Germany has pointed out Beijing's cooperation with Russia.
3:29 PM EDT, June 22, 2024
German Vice Chancellor Robert Habeck encountered strong criticism from the EU during talks in Beijing. According to Handelsblatt, Zheng Shanjie, chairman of China's National Development and Reform Commission (NDRC), described Brussels' plans to impose tariffs on electric vehicles from China as "unacceptable."
Economic cooperation 'should not be used as a weapon'
Zheng Shanjie pointed out that only 12.5 percent of electric vehicles produced in China are exported. "In Germany, this rate is much higher," he emphasized.
Chinese Commerce Minister Wang Wentao was equally critical. He says imposing tariffs on Chinese cars is "an attempt to hinder China's industrial development." He added that economic cooperation "should not be used as a weapon." He also hoped that "Germany will change the EU's mind."
Germany warns Beijing. 'Not punitive tariffs'
Meanwhile, Robert Habeck assured the Chinese side that the tariffs that the EU will soon impose on Chinese vehicles and "it is important to understand that these are not punitive tariffs."
He simultaneously warned the Chinese government about the economic consequences of cooperating with Russia. "Russia's war with Ukraine has a direct impact on German and European security interests," he said.
He added, "We would act differently and certainly not as harshly, analyzing our dependence on raw materials and technical goods, if not for the war against Ukraine and the support given to Russia by China," he emphasized, quoted by DPA.
The politician believes that Ukraine-related issues cannot be separated from economic cooperation with China. "Our relations, our direct relations, have already experienced negative consequences," he declared.
He also called the Chinese side to take the European Commission's findings seriously. "It's important to understand that these are not punitive tariffs," he said.
"The Americans did it, Brazil did it, Turkey did it, and they imposed punitive surcharges on Chinese vehicles. Europe is acting differently. There is also a qualitative difference," he argued.
The EC fears that cheap cars from China will push out European producers
Recall that the European Commission (EC) announced special tariffs on electric cars from China last week, ranging from 17.4 to 38.1 percent. The reason is the fear that cheap electric vehicles "made in China" will push European producers out of the market.
According to EU representatives, Beijing "unfairly subsidizes" the automotive sector at the expense of EU producers. China has, from the beginning, opposed the tariffs and announced measures to protect its own interests.
Recently, the EC announced that it had approached Beijing to reach an agreement on this matter. If talks do not agree, temporary tariffs will be introduced starting July 4. Meanwhile, China has announced anti-dumping measures in retaliation, including against products imported from the EU, such as pork.
The European Union is currently the largest recipient of Chinese electric vehicles, accounting for almost 40 percent of the country's exports.
