The German automobile industry is urging for dialogue with China instead of resorting to punitive tariffs on Chinese electric vehicles. The Federation of Automobile Manufacturers believes that imposing tariffs could lead to negative consequences, jeopardizing trade relations and the progress of electric vehicles.
In light of the ongoing EU investigation into government subsidies for electric vehicles in China, the German Automobile Industry Federation Chairman Hildegard Müller emphasized the importance of engaging in constructive dialogue rather than escalating tensions. She highlighted the significant role that business with China plays in creating jobs and facilitating investments in transformation within the German auto industry.
The European Commission’s investigation, initiated last autumn, is examining whether Chinese electric vehicles have received illegal subsidies, making them more affordable compared to EU-made vehicles. If punitive tariffs are imposed as a result of the investigation, it could disrupt trade relations and potentially lead to retaliatory measures from China targeting German exports.
As the EU prepares to make a decision on the issue by June 5, the German automobile industry is calling for a diplomatic approach to address the challenges facing the sector. Balancing trade interests and maintaining strong economic ties with China are crucial for the continued growth and success of the German auto industry.