Habeck says EU tariffs on Chinese cars are not a “punishment” – DW – 06/23/2024

the European Union Not punished China Imposing customs duties on Chinese products Electric car (electric vehicles), Germany Economy Minister Robert Habeck said in Beijing on Saturday.

His comments come in the wake of EU plans to impose tariffs Definitions Regarding imports of Chinese electric cars to confront excess capacity in the automotive sector, which Brussels says is caused by Chinese automakers dumping cheap cars in European markets.

What did Robert Habeck say?

occur during a Visit to ChinaHabeck, who is also vice chancellor, called on Beijing to take note of the study’s findings European Commissionthe executive arm of the European Union, seriously.

“It’s important to understand that these are not punitive definitions,” Habeck said.

He added that the Commission spent nine months investigating whether Chinese automakers had unfairly benefited from heavy government subsidies.

Habeck said any duties imposed after the EU review should not be seen as “punishment” but rather as compensation for the advantage Chinese automakers gain from government support.

Habeck told Chinese officials that it was important for Brussels to try to maintain a level playing field for the EU Auto industry in Europe.

“Common and equal market access standards must be achieved,” Habeck said.

Later, Habeck headed to Shanghai where he again spoke on the issue of tariffs: “What I proposed to my Chinese partners today is that the doors are open for discussions and I hope that this message will be heard.”

China warned of a negative reaction to the Russian position

Habeck earlier repeated his warning that China would face economic consequences for its support of Russia in World War II War on UkraineIn reference to how European Union countries are reducing their dependence on Chinese imports.

“We would have acted differently, and certainly not as seriously, when analyzing where we depend on raw materials and technical goods if this war, or China’s support for Russia in this war, had not existed,” Habeck stressed.

He said that German and European security interests are directly affected by the conflict that has been ongoing for two and a half years.

Habeck was speaking at a plenary session of the Climate and Transition Dialogue in Beijing.

What did the European Union accused China of doing?

In October, the European Commission said it would conduct an anti-subsidy investigation for Chinese electric vehicles imported into Europe.

Commission President Ursula von der Leyen warned that “the global market is full of cheap electric cars.”

It said the price of the vehicles was “remained artificially low” due to “huge government subsidies” from Beijing.

Last week, Brussels announced plans to impose tariffs on imports, which will vary by Chinese carmaker, depending on its compliance with EU trade rules.

The temporary fee of up to 38% is scheduled to take effect on July 4.

The EU investigation is set to last until November when final charges could be imposed for up to five years.

Habeck informed his Chinese counterparts that there is time for dialogue between the two forces before then.

“This opens a stage in which negotiations are possible, discussions are important, and dialogue is necessary,” Habeck said.

During its rapid economic rise, China has been repeatedly accused of unfair trade practices, including flooding the global market with cheap goods – from shoes to solar panels – and violating the intellectual property rights of Western brands.

Meanwhile, Washington imposed… 100% definitions on Chinese electric cars, a move that effectively shut them out of the American market.

How did Beijing respond?

Ahead of Habeck’s visit, China warned that escalating frictions with the European Union over electric cars could lead to a trade war.

On Saturday, Zheng Shanji, head of China’s National Development and Reform Commission, denied accusations of unfair subsidies and said at the same hearing that Beijing would do “everything to protect Chinese companies.”

The growth of the automobile industry “is the result of competition, not subsidies, let alone unfair competition,” Cheng said.

He added that the proposed tariffs could hurt both sides, and expressed his hope that Germany would show leadership within the European Union and “do the right thing.”

Later on Saturday, German and Chinese officials confirmed that talks between Beijing and Brussels would begin soon to try to avoid tariffs.

Habeck said he was surprised to be informed of the move by EU Commissioner Valdis Dombrowski, who agreed to start the talks during a conversation with Chinese Trade Minister Wang Wentao.

Habeck: China supports vital climate-related goals

Habeck traveled on Sunday to the southern Chinese city of Hangzhou, where he told officials that global climate goals will not be achieved without China’s support and that Beijing must find a safe alternative to coal.

Referring to how Chinese officials have been told that they are expanding coal production for security reasons, the Vice Chancellor said:

“You don’t have to teach them that carbon dioxide emissions are bad for the climate. They get that.”

But he added that the alternative should allow them to achieve the same level of security with fewer coal-fired power stations.

mm/RM (dpa, Reuters)