(Bloomberg) — German Economics Minister Robert Habeck has called on the European Union and China to find a political solution to a dispute over electric vehicles made in China, saying a trade conflict must be avoided “at all costs.”
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The EU is set to hold a vote on Sept. 25 on imposing final tariffs on electric vehicles imported from China, people familiar with the matter told Bloomberg last week. Germany has joined fellow automaker Spain in trying to convince member states to drop the plan, as both have significant financial incentives to avoid tit-for-tat measures.
In a statement released after talks in Berlin on Tuesday with Chinese Trade Minister Wang Wentao, Habeck said that while Germany embraces competition with the Asian nation, “this must be done on fair terms.”
At the same time, he said officials in Berlin “absolutely want to avoid a trade conflict with sky-high tariffs, which ultimately harms both sides.”
“Therefore, my position is clear: we need a political solution,” Habeck added. “The European Commission and China must do everything they can to find a negotiated solution. I am also in contact with the European Commission on this.”
The EU’s executive arm launched the EV investigation last year, saying Chinese companies were unfairly benefiting from state subsidies and flooding Europe with excess production. In response, Beijing launched anti-dumping investigations into EU exports of brandy, dairy and pork products.
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