EU imposes heavy tax on Chinese electric cars, Germany "softens" and says it is not a "punishment"

German Vice Chancellor and Economy Minister Robert Habeck arrived in Beijing for a three-day visit, amid recent tense negotiations over imposing high import tariffs on Chinese electric vehicles (EVs) sold in the European Union (EU).

German Vice Chancellor and Economy Minister Robert Habeck and National Development and Reform Commission (NDRC) Chairman Zheng Shanjie before a meeting in Beijing, China on June 22. (Source: Reuters)

The EU's proposed tariffs on Chinese goods are not a "punishment", German Economy Minister Robert Habeck told Chinese officials in Beijing on June 22.

Habeck's visit to China is the first by a senior European official since Brussels proposed heavy tariffs on imports of Chinese-made electric vehicles (EVs) to counter what the EU says are excessive subsidies.

China warned ahead of his arrival on June 22 that escalating frictions with the EU over electric vehicles could spark a trade war.

Mr Habeck is the first European minister to visit China since the EU announced its tariff proposals. Brussels argues that the “generosity” of Beijing’s subsidies gives Chinese carmakers an unfair competitive advantage over European manufacturers. Mr Habeck said the European Commission had been examining in great detail for nine months whether Chinese companies were unfairly benefiting from the subsidies.

China has opposed the proposal, threatening a trade war as its carmakers called on Beijing to impose import duties on European internal combustion engine vehicles.

Both China and Germany saw the trip as an opportunity for Habeck – as a spokesman for Europe’s largest economy and someone with deep ties to Chinese industry – to ease tensions over tariffs, which German carmakers have opposed for fear of retaliation.

China accounted for nearly a third of Germany's total car sales last year.

Mr. Habeck himself has criticized Germany's China strategy, calling it short-sighted and incompatible with China's strategies toward Europe.

China has been Germany’s top trading partner for eight consecutive years – a record that was not broken until this year when Germany’s trade with the US surpassed that with China. In May, German exports to China fell 14%, while exports to the US rose 4.1%.

Source: https://baoquocte.vn/eu-ap-thue-nang-voi-xe-dien-trung-quoc-duc-xoa-diu-va-noi-khong-phai-la-mot-su-trung-phat-275945.html