Chinese President Xi Jinping urged German Chancellor Olaf Scholz on Tuesday to facilitate the resolution of the EU’s tariffs on Chinese electric vehicles, as reported by state television CCTV.
During their meeting on the sidelines of the Group of 20 summit in Rio de Janeiro, Xi expressed China’s readiness to collaborate with Germany to strengthen their strategic partnership. He then highlighted the issue of EU tariffs on Chinese-made EVs, which has heightened the risk of a trade conflict between Beijing and the bloc.
The EU green lit significant tariffs on imports of Chinese electric vehicles after receiving broad support from member states. These tariffs are expected to increase from the current 10% to as much as 45% over the next five years.The European Commission, which conducted the vote, emphasized that the EU and China would “work hard to explore an alternative solution” to the tariffs. In response, China’s Commerce Ministry denounced the decision as “unfair” and “unreasonable,” but acknowledged the possibility of resolving the issue through negotiations.
EU member states were divided on imposing tariffs on Chinese electric vehicles. Germany, whose automotive industry relies heavily on exports to China, opposed the tariffs. Many EU members abstained from the vote. However, France, Italy, the Netherlands, and Poland supported the import taxes. The proposal for tariffs could only have been blocked if a qualified majority of 15 member states had voted against it.
The dispute has sparked concerns among industry groups outside the automotive sector about potential retaliatory tariffs from China. A trade body representing the French cognac industry criticized the French authorities, stating they “have abandoned us.” They added, “We do not understand why our sector is being sacrificed in this way.”
Xi stated, “It is hoped that Europe and China will resolve the issue of electric vehicles through dialogue and negotiation as soon as possible, and the German side is willing to make active efforts in this regard,” according to a readout from Chinese state news agency Xinhua.
A spokesperson for the German government mentioned that Scholz’s meeting with Xi lasted 30 minutes, during which the chancellor also discussed geopolitical issues, including the conflicts in Ukraine and the Middle East.
Xi’s South America tour commenced with his participation at the Asia-Pacific Economic Cooperation forum in Lima, where he inaugurated a Chinese-funded Pacific port. Following the conclusion of the G20 summit on Tuesday, Xi is scheduled to visit Brasilia for a state visit, where he will meet with Brazilian President Luiz Inacio Lula da Silva and sign several cooperation agreements.
