The German vice-chancellor assured Saturday in China that the ‘doors’ remained ‘open’ to discuss EU surcharges on Chinese electric vehicles. It did not reassure Beijing, which promised to ‘firmly defend’ its manufacturers.
Also Minister of Economy and Climate, Robert Habeck is making a visit that seems like a last chance to avoid a trade war between the Old Continent and the second world power – Germany’s important economic partner.
A task further complicated by the political context, the German leader reproaching China on Saturday for its economic support for Russia, against a backdrop of the invasion of Ukraine, stressing that it was ‘harming’ relations between Beijing and Brussels.
China regularly denounces these upcoming surcharges on electric vehicles as being ‘purely protectionist’.
‘These are not punitive customs duties,’ Robert Habeck assured Zheng Shanjie, director of the Chinese Economic Planning Agency (NDRC), on Saturday, according to a recording sent to AFP by the Chinese embassy. ‘Germany. ‘This is not a punishment,’ he insisted.
Distorted competition
Without compromise by July 4, the European Commission will impose up to 28% increase in customs duties on imports of Chinese electric vehicles, accusing Beijing of having, according to it, distorted competition by massively subsidizing this sector .
These surcharges would become definitive from November.
‘For Europe, I can say that the doors are open and the invitation or offer for discussion has been made several times. Now it must be accepted,’ Robert Habeck said at a press conference in Shanghai.
Earlier on Saturday, the tone had been firm on the Chinese side.
‘If the EU shows sincerity, China wants to start negotiations as soon as possible’ on the surcharges, Trade Minister Wang Wentao told him, according to the English-speaking state television CGTN.
‘But if the EU persists in this path, we will take all necessary measures to defend our interests. This will include filing a complaint with the World Trade Organization (WTO) dispute settlement mechanism. We will firmly defend the legitimate rights and interests of Chinese enterprises.’
The targeted pig
Beijing had already announced on Monday that it had launched an anti-dumping investigation into imports of pork and pork products from the European Union (EU).
German and European manufacturers are strongly affected by cheaper Chinese competition. Imports of Chinese electric vehicles into Germany increased tenfold between 2020 and 2023.
China argues that the success of its electricity sector is due to innovation and efficient supply chains, not subsidies.
‘Protectionism (of the EU) will not protect the competitiveness (of its manufacturers) and will only slow down the global fight against climate change and the promotion of a green transition,’ Zheng Shanjie told Robert Habeck.
‘We expect Germany to show leadership within the EU and take the right measures’, implying the cancellation of the surcharges, he insisted, according to the New China agency.
‘Not accept’
Such an epilogue seems improbable, with Robert Habeck again blaming Beijing on Saturday for the surge in its trade with Moscow.
‘The Russian war of aggression and Chinese support for the Russian government are already harming trade and economic relations between Europe and China,’ he said he told his Chinese interlocutors.
China has pledged not to supply weapons to Russia and calls for respect for the territorial integrity of all countries – including Ukraine. But she never condemned Moscow for its invasion.
Robert Habeck assured Saturday that many ‘dual-use’ goods (both civil and military) were used by Russia after passing through ‘third countries’ – implying China.
‘We therefore cannot accept’ that the Russian invasion is supported with these products, insisted the German vice-chancellor, calling on Beijing to ban their export to its Russian neighbor.
German car manufacturers still fear a major trade conflict with Beijing, which would undermine their activity in this crucial market. For Mercedes, Volkswagen or BMW, China represents up to 36% of sales volumes.
/ATS
