German Trade Minister Robert Habeck is in China this Saturday, June 22, while the European Union (EU) accuses Beijing of unfair competition and promises additional taxes on Chinese electric cars imported into Europe. The visit of Robert Habeck, also vice-chancellor, looks like a last chance before a trade war.
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As soon as he arrived, the number 2 of the German government tried to reassure. No, the surcharge on Chinese electric vehicles is not a “ punishment », said Robert Habeck, German Minister of Commerce and Vice-Chancellor, visiting China on Saturday. Before ensuring that a way out of the crisis is still possible. But time is running out between Beijing and Brussels. Without compromise between now and July 4, customs duties on imported Chinese electric cars in Europe could increase by up to 28%, due to accusations of unfair competition.
Beijing will not let this happen, warned the Chinese director of the national development commission, Zheng Shanjie: “ Recently, European countries have been talking about “overcapacity” of Chinese industryhe pointed. This clearly goes against market laws and economic common sense. China will take all necessary measures to safeguard the legitimate rights and interests of Chinese companies “. And to preserve both the rights and interests of its companies, China promises to respond. Already this week, an anti-dumping investigation was launched into European pork imports.
Berlin worries about Chinese retaliation… on German cars
But in Berlin, it is another retaliatory measure which worries. The possibility of seeing Beijing in turn impose a surcharge on German cars exported to China remains a threat. “ The Americans did itBrazil did it, Turkey did it and imposed bulk surcharges on Chinese vehicles “, but ” Europe does things differently “, tempered Robert Habeck. New Chinese taxes would be a huge blow for German car manufacturers. For brands like Mercedes or BMW, China represents up to 40% of their sales volumes.
“ Protectionism (from the EU) will not protect competitiveness (of its manufacturers) and will only slow down the global fight against climate change and the promotion of a green and low-carbon transition said Zheng Shanjie. “ We expect Germany to show leadership within the EU and take the right steps “, implied obtains the cancellation of these surcharges, insisted Mr. Zheng, according to the official Xinhua news agency.
China remained Germany’s leading trading partner for the eighth consecutive year in 2023, however, falling behind the United States since the start of the year.
Read alsoChina ready to retaliate against EU threats to tax its electric vehicles