Discussions between the EU and China over customs issues deemed "positive initial action" by Habeck
In the coming weeks, further actions will ensue. This news comes as the EU Commission imposed potential penalties on Chinese-made electric cars, which could go into effect as early as July. The EU authorities found evidence of "unfair subsidization" in China's battery-powered electric vehicles during a competitive investigation, a move that could potentially harm EU manufacturers.
Habeck attempted to mediate the conflict with China. Recent developments show that Brussels and Beijing have established a "plan for preliminary discussions," according to Habeck. While this is far from a resolution, at least progress is being made towards conversation.
Due to the Chinese market's significance to the German automotive industry, the German government stepped in to advocate for their sector within the EU. However, there has been internal disagreement within the EU on this matter.
Habeck stressed that he visited China as the German Economics Minister, but his mission was to "amplify the German perspective within Europe." He collaborated closely with the Commission and acknowledged that Germany alone could not bring about change. "If we don't act collectively as Europeans, then we risk being dismantled by other economic powers someday," warned the Vice-Chancellor. "This is about preventing the collapse of the open trading world into numerous regional protectionist, insulated zones."
