German economy minister confirms EU-China talks on tariffs

2024-06-23 08:39:00, Kosova & Bota CNA

German economy minister confirms EU-China talks on tariffs

Illustrative photo

German Economy Minister Robert Habeck said on Saturday that he had been informed by EU Commissioner Valdis Dombrovskis that there would be concrete talks on tariffs with China.

The confirmation came after China's commerce ministry said its head, Wang Wentao, and Mr Dombrovskis, executive vice-president of the European Commission, had agreed to begin consultations on an EU investigation into allegations that the Chinese government is subsidizing Chinese manufacturing companies. electric cars, which are operating in Europe.

Mr. Habeck said in Shanghai that the purpose of the investigation is to create a level playing field in the electric car market. It is good to be export-oriented, but subsidies should not be used for this, he said.

Mr Habeck's visit is the first by a senior European official since Brussels imposed tariffs worth 38.1 per cent on imports of Chinese electric cars to combat excessive subsidies of Chinese companies by the government in Beijing.

German Economy Minister Habeck said there is time for dialogue between the EU and China on the issue of tariffs before Brussels' decision on Chinese electric car imports takes full effect in November.

Another tense issue between Beijing and Berlin is China's support for Russia's war on Ukraine. Mr. Habeck noted that trade between China and Russia has increased by 40 percent in the past year.

The European Union's temporary tariffs on Chinese imports of electric cars will come into effect on July 4, but the investigation into subsidies to Chinese car companies operating in Europe will continue until November 2, when it could be decided to leave tariffs on Chinese companies in place for five years.

China's leaders have helped make the country one of the world's largest car markets, investing billions of dollars in subsidies to create an early advantage in the electric car manufacturing industry.

Global carmakers are facing increasing competition in their regions from Chinese companies, which have increased exports of electric cars due to falling demand in China.

European Union officials believe Chinese electric vehicles are undercutting domestic models by around 20 percent in the European market, increasing pressure on European companies to produce lower-cost electric vehicles.

China has previously called Western concerns about subsidies to electric companies "baseless" and has claimed that the country's success in the international market has been achieved thanks to innovation./ VOA