University Leader Habeck Reports Advancements in Talks with China Regarding Penalizing Taxes on Electric Vehicles
In the tug-of-war over taxes on Chinese electric vehicles, German Economics Minister Robert Habeck is aiming for a political resolution. During talks with China, he noted advancements, the Green political figure mentioned at the IAA Transportation trade fair in Hannover. "Things are shifting there." He's looking to prevent "a back-and-forth increase in tax disputes that would solely damage the German and European economies."
Habeck didn't touch upon the sector's request to put off the tax decision. His coalition partner, Transport Minister Volker Wissing of the FDP, had earlier endorsed the suggestion to postpone the decision, which is scheduled for November. The head of the Association of the German Automotive Industry, Hildegard Müller, cautioned about potential Chinese reprisals hurting the German industry. "We sell one hundred times more vehicles in China than China does in Europe."
The EU implemented provisional taxes on Chinese electric vehicle imports on July 5, based on an investigation revealing the entire value chain in China is significantly subsidized, posing a significant danger to the EU industry. The ultimate taxes will be introduced by November 5, unless China provides unexpected concessions. Taxes don't need to be paid until then.
The dispute over taxes on Chinese electric vehicles has become a point of contention between Germany and China, with Habeck aiming to prevent a prolonged increase in tax disputes. Habeck's coalition partner, Volker Wissing, had suggested postponing the tax decision due to potential Chinese reprisals affecting the German industry.
