German minister opposes EU doing this to Chinese electric cars

German Transport Minister Volker Wissing has spoken out against possible protectionist tariffs imposed by the European Union (EU) on Chinese electric vehicles.

“In principle, I don't think much about putting up market barriers,” Mr. Wissing told the German newspaper Augsburger Allgemeine published on September 25.

“Today it is cars, tomorrow it will be chemicals, and every step makes the world poorer,” said the minister from the business-friendly FDP. “We must ensure that we can produce electric vehicles competitively – for the German market and for the world market.”

On the other hand, Mr. Wissing warned, a trade war could quickly spread to other sectors and cause great economic damage.

In mid-month, European Commission President Ursula von der Leyen announced that the EU had begun an investigation into whether to impose additional tariffs – known as anti-dumping and anti-subsidy duties – on cheap electric cars from China that are flooding the European market at a pace and scale that threatens the EU’s own electric vehicle manufacturing industry.

World - German Minister opposes EU doing this to Chinese electric cars — German Transport Minister Volker Wissing (L), a member of the pro-business FDP party, and German Economy Minister Robert Habeck (C), a member of the Green Party, at the third national aviation conference at Lufthansa Technik, in Hamburg, Germany, September 25, 2023. Photo: IMAGO

For the German auto industry, where China is its biggest customer, the move would be a threat, experts say. “There is a huge risk. We need cooperation with China, not a trade war,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research in Duisburg.

According to Volkswagen, more than a third of the cars delivered by Germany’s largest automaker in August went to customers in China. As part of its “In China for China” campaign, Volkswagen recently deepened its commitment to the country by taking a 4.99% stake in Chinese electric vehicle startup XPeng. Meanwhile, the group’s Audi brand continues to expand its cooperation with its Chinese joint venture partner SAIC.

Other carmakers such as Geely (China) and Mercedes-Benz (Germany) are also working closely together. Accordingly, German Transport Minister Wissing said: "Only international trade in the global market creates prosperity."

A spokesperson for China's Ministry of Commerce said earlier this month that China and the EU have broad cooperation space and common interests in the auto industry, adding that after years of development, the two sides have formed a model of mutual support.

China sees the EU investigation as protectionism, and warns it will damage bilateral economic relations.

German Economy Minister Robert Habeck, on the other hand, welcomed the move and said the EU would have to act if the investigation uncovered major violations of competition rules .

Minh Duc (According to CGTN, Reuters)

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