Habeck endeavors to resolve the dispute concerning EU tariffs.
Economics Minister Robert Habeck (Green Party) has been engaged in talks with Chinese officials aiming to resolve disputes over EU tariffs. In Shanghai, he shared that the discussions could have nudged things in a positive direction, expressing hope for further mutual understanding. The EU's doors remain open, and a dialogue invitation is extended – it's high time for it to be acknowledged.
Habeck previously conferred with Chinese government representatives in Beijing. Recently, the EU Commission imposed tariffs on electric cars from China, set to be implemented from early July. Nevertheless, dialogues are essential to find a resolution. The German government expresses opposition towards tariffs, while the automobile industry voices concerns about potential backlash and hindrances to their operations in China.
Habeck emphasized the importance of understanding the viewpoints of both parties involved in the EU-China standoff. In Shanghai, during his China tour, he stated that the Chinese government might interpret the tariffs as Europe's protective measures for its market. Conversely, the European side perceives China's actions as strategic moves to disrupt a market.
However, the issue at hand isn't merely about individual companies having the freedom to amass excess capacities or countries granting state subsidies, Habeck added. The concern stems from state subsidies being utilized to create export capacities and subsidized excess capacities for businesses. He now anticipates that "we will also discuss" the matter, as the Vice Chancellor.
Critics accuse China of engaging in unjust trade practices. There are concerns that excessive state subsidies in sectors like the automotive industry, renewable energy, or battery production result in excess capacities, flooding the European and global markets with cheap goods, to the disadvantage of Chinese competitors. According to official statistics, the share of Chinese imports of electric cars to Germany has been gradually rising in recent years.
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During his visit to Shanghai, Habeck expressed hopes that the discussions on EU tariffs with Chinese officials could lead to a more amicable resolution, potentially defusing the ongoing conflict. Despite the EU's recent imposition of tariffs on Chinese electric cars, Habeck emphasized the necessity of dialogue to find a solution, as these tariffs might be perceived as protective measures by the Chinese government. With the ongoing dispute concerning export capacities and subsidized goods between EU and China, the Vice Chancellor anticipates addressing this issue during his talks.
