BEIJING: German Chancellor Olaf Scholz has told reporters, international business leaders, and politicians that talks to find the best deal on proposed European Union tariffs on Chinese-made electric vehicles (EVs) need to continue.
Speaking at the Berlin Global Dialogue (BGD), Chancellor Scholz said, “Negotiations with China on electric vehicles must continue…. We as the EU must not harm ourselves in trade conflicts.”
EU member states will vote on the proposed tariffs in Brussels on Friday morning. It could see an additional 38 percent levied in import duties on EVs manufactured in China. Brussels argues that Beijing provides unfair subsidies to EV manufacturers that allow Chinese products to be sold at a price that undercuts those vehicles made in Europe.
German auto giant BMW’s CEO Oliver Zipse has encouraged Chancellor Scholz and his coalition government to tread a diplomatic path to ensure that organizations like his do not get caught in the crossfire should China respond in kind.
German companies exported $29.08 billion worth of vehicles and parts to China last year alone, with imports of Chinese vehicles and parts into the country standing at $7.52 billion.
Understandably, German manufacturers are concerned about blowback if the EU instigates a trade war. Scholz suggested in his address that quid pro quo solutions could still be found.
He raised the prospect of trying to get China to voluntarily shift its status in the World Trade Organization, which Berlin feels gives Beijing an unfair advantage.
“China should forgo the special treatment it enjoys as a developing nation in the WTO,” he said.
Scholz dismissed the calls among a fringe group in his country who have spoken about “decoupling” the German economy from China. Trade between the two was worth over $280 billion in 2023 so disengagement would be an unrealistic option. Scholz, though, did say that he wanted Germany to be more self-sufficient in certain areas.
“We must finally tackle the areas where cheap Chinese imports are actually harming our economy, for example steel,” said the German leader. –The Daily Mail-CGTN news exchange item
