"How about taking turns to physically strike our heads, such an act would cause harm"
Before taking off for Beijing, Germany's Economic Affairs and Climate Action Minister Robert Habeck voiced optimism about settling the trade dispute between the EU and China, emphasizing the importance of avoiding an all-out battle. Yet, a swift resolution isn't anticipated.
In the ongoing trade disagreement between the EU and China, Habeck has shown eagerness for diplomatic talks in Beijing. "I ain't expecting this beef to get sorted out while I'm in China," Habeck commented prior to his departure from Seoul. "I can't bat for the EU neither," he added. He aimed to lend a hand in kick-starting negotiations. "The vibe ain't exactly encouraging right now."
The EU Commission has levied provisional duties on the import of Chinese electric passenger cars, effective from November. Till then, China can either refute the charges of extensive government subsidies or postpone them. Chinese electric vehicles are a lot cheaper in Europe compared to domestic brands.
In a separate probe, the EU Commission concluded that China financially backs production at various levels. Moreover, manufacturers like BYD have developed an oversupply, which they're now pushing into the European market. These duties have raised eyebrows in Europe. Europe aims to swiftly electrify its vehicle fleet to slash the massive CO2 emissions in the transportation sector. European manufacturers, however, haven't presented affordable models yet, with only a handful of electric compact cars in their inventory.
In response, China vehemently denied the Brussels accusations and soon retaliated with higher tariffs on European pork. Given the fragile economy, there's worry in many German sectors about a trade war, where both sides might impose tit-for-tat tariffs and make trade more challenging. China, alongside the USA, is one of Germany's most significant trading partners outside the EU, with the USA primarily due to energy exports maintaining comparable trade volumes.
"The China-EU relationship has become increasingly tangled in recent years, and that's putting it mildly," Habeck stated. "Germany, being the largest nation and the leading car manufacturer in Europe, surely occupies a unique position." Habeck had run his plans by EU Trade Commissioner Vladis Dombrovskis before departing, as the Green party member disclosed.
In Beijing, Habeck will be welcomed by Trade Minister Wang Wentao and Industry Minister Jin Zhuanglong on Friday afternoon (local time). Furthermore, he is expected to meet the Chairman of the State Development and Reform Commission (NDRC), Zheng Shanjie. The NDRC is a central planning commission that sets objectives and targets for the development of the Chinese economy.
Habeck will be flanked by several reps from German SMEs (Small and Medium-sized Enterprises). The CEOs of the big corporations traveled to China with Federal Chancellor Olaf Scholz in April. The German government is seeking a balance, advocating for fair and law-abiding trade with China, while at the same time reducing Germany's reliance on China as a market, production site, and raw materials source.
