Government official and Habeck engage in physical altercation
In Beijing, one finds Robert Habeck, German Vice-Chancellor, striving to strengthen economic ties with China. His concerns, however, run deeper with China's relationship with Russia being a point of contention for the German government. The disputes over auto zones and CO2 emissions are causing tension.
Robert Habeck, the German Economic Minister, expressed his disapproval of China's backing of Russia's aggression during his initial discussions in Beijing. "It's crucial that China comprehends the impact of assisting Russia in this conflict, which now poses a direct threat to German and European security," Habeck declared during a meeting with Chinese authorities, specifically Chairman of the State Development and Reform Commission (NDRC), Zheng Shanjie. "Our established relationship is already affected negatively," according to Habeck.
The influential NDRC is a significant, state-controlled Party organization that guides China's economic development. Zheng and Habeck initially engaged in a private discussion before moving on to a broader discussion, established as a new climate dialogue, in a public setting. The Chinese host remained silent over the European accusations of China's direct support for Russia's offensive war on Ukraine during his opening speech.
Zheng severely criticized the EU Commission's announced special tariffs on Chinese electric vehicles. "I believe that remark is ludicrous," Zheng commented on the claim that China excessively subsidizes electric vehicles meant for export to Europe. "Penalty tariffs," Zheng referred to the tariffs that Brussels referred to as compensatory tariffs. "Such an approach is unacceptable," Zheng asserted. Tariffs, according to Zheng, would harm "the long-term, healthy growth of the automobile industry in Europe."
Unlike Habeck, the Commission Chairman also offered warm words to his guest. Beijing has "recognized that the German side rejects this approach," Zheng remarked about the German government's negative stance on subsidies. "We admire that."
Habeck: Tariffs are not penalties, but compensations
Habeck countered this statement and supported the EU Commission's stance. He had emphasized several times before his journey to China that he could not negotiate on behalf of the EU Commission. However, the German Economic Minister had been in touch with Trade Commissioner Vladis Dombrovskis prior to his departure for China.
Beijing must "comprehend that it's not about penalties," Habeck mentioned in his speech. It's about "compensating for granted privileges." This, Habeck asserted, contradicts the high-ranking Chinese host's stance on the question of whether there are, in fact, subsidies for electric car manufacturers.
Habeck also cautioned against the "misleading and harmful trend" toward protectionism. The Green politician and Vice-Chancellor is currently in China alongside a delegation of representatives from German small and medium-sized enterprises. Many of them complain about increasingly challenging market access in China. The German government advocates for reciprocity: European companies should have the same opportunities as Chinese companies in Europe. Unfortunately, this balance has been corrupted in recent years.
CO2 emission reduction remains a challenge
There was open disagreement regarding China's reduction of CO2 emissions. In response to German criticism of the numerous new coal-fired power plants in China, Zheng highlighted that "new construction is solely for load management." These coal-fired power plants are to serve as backup when renewable energy production is insufficient due to a lack of wind or sunlight. "The decline of coal cannot occur overnight," Zheng added, referring to ensuring a stable energy supply and "various stages of development" in Germany and China.
Habeck questioned the necessity of coal-fired power plants. It's "inefficient," he stated, to support renewable energy and traditional energy sources concurrently. Habeck emphasized, "Germany and Europe must recognize our historical responsibility for past emissions." The Chinese side ought to acknowledge, according to Habeck, "that we don't intend to evade or retreat from our historical responsibility." However, one cannot evade or retreat from the historical responsibility of others or lessen it. The CO2 emissions should "be reduced as much as possible in China too."
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During their discussions, Habeck brought up the topic of China's support for renewable energies, highlighting Germany's desire for greater collaboration in this area. "Germany strongly advocates for deepening our cooperation in the field of renewable energies," Habeck stated, emphasizing the potential for shared growth and sustainability.
Amidst trade tensions and discussions on CO2 emissions, Habeck also took the opportunity to broach the topic of the car industry. "It's essential that we address the challenges in the automobile sector, particularly in relation to emissions and trade relations," Habeck suggested, encouraging a collaborative approach to tackling these issues.
