EU's economical war with China? German minister Habeck faces pushback over EV tariffs
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.
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. 'Tariffs are not a punishment'
Meanwhile, Robert Habeck assured the Chinese side that the tariffs the EU will soon impose on Chinese vehicles "are not a punishment."
He simultaneously warned the Chinese government about the economic consequences of cooperating with Russia, stressing that Russia's war with Ukraine has a direct impact on German and European security interests.
He added, "We would proceed differently and certainly not quite as hard when analyzing where we have dependencies on raw materials and technical goods if this war or China's support for Russia in this war did not exist," he emphasized, quoted by DPA.
The politician believes it is impossible to separate Ukraine-related issues from economic cooperation with China.
He also called the Chinese side to take the European Commission's findings seriously. "It is important to understand that these are not punitive tariffs," he said.
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 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.
