German Vice Chancellor and Minister of Economy, Robert Habeck, called today, Tuesday, for the European Union and China to find a negotiated solution regarding the imposition of taxes on Chinese electric vehicles to avoid a trade war. In a statement following his meeting in Berlin with Chinese Commerce Minister Wang Wentao, Habeck said, "We want to avoid a trade war with a spiral of tariffs that ultimately harms both sides."
The Chinese minister is scheduled to travel to Brussels on Thursday to try to persuade EU Trade Commissioner Valdis Dombrovskis to refrain from applying the tariffs announced by the European Commission. Germany, in turn, is increasing pressure on negotiators after Spain last week, through its Prime Minister Pedro Sánchez during his visit to Shanghai, asked the Commission to reconsider its stance. Germany welcomed these statements, saying, "We share the same approach. "
Habeck added today, Tuesday, "China is of great importance o the German and European economies, and on the other hand, China also has a significant interest in trading with us.
On August 20th, the European Commission announced its decision to impose additional tariffs for five years on electric vehicles imported from China, including those produced by the American company Tesla at its Shanghai plant. The Commission accuses Beijing of undermining competition by heavily subsidizing manufacturers within its territory, allowing them to offer their cars at lower prices. The EU, on its part, wants to protect the automotive sector, which employs 14.6 million workers.
In response, Beijing launched an anti-dumping investigation into pork and related products, with Spain being the largest European exporter of such products to China.
Before the tariffs can be finalized, the 27 EU member states must approve them by the end of October. However, these states are divided over the imposition of the tariffs, which has broad support within the European Council. To counter the Commission, opponents would need to gather the votes of 15 countries representing 65% of the EU population.
China's Dominance in the Global Electric Vehicle Market:
China dominates the global electric vehicle market with a share of around 60% of sales. This dominance is attributed to significant government support aimed at promoting electric transportation through subsidies and policies encouraging sustainable energy. Chinese companies such as BYD and NIO play a major role in this market, along with Tesla’s factory in Shanghai, which contributes significantly to this share. China is also a key hub for electric vehicle battery production, further strengthening its position in the sector. As a result, China is the largest consumer and producer of electric vehicles, leading the global shift towards sustainable mobility.