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Germany's Habeck Visits Beijing Amid Rising EU-China Tensions Over 38.1% EV Tariffs

Jun 22, 2024, 11:30 AM

Germany's Vice Chancellor and Economy Minister Robert Habeck has arrived in Beijing amid rising tensions between China and the European Union (EU) over proposed tariffs on Chinese electric vehicles (EVs). The EU plans to impose tariffs of up to 38.1% on Chinese-made EVs starting July 4, citing heavy subsidies received by Chinese carmakers. In response, Chinese industries are urging their government to impose a 25% tax on large European cars. The Chinese Ministry of Commerce has warned that escalating trade frictions could lead to a trade war. Despite the tensions, both sides have agreed to initiate discussions on the EU's anti-subsidy investigation into Chinese EVs. Habeck emphasized that the tariffs are not punitive and called for a united European position. He also highlighted the importance of China in achieving global climate goals and expressed concerns about China's support for Russia in the Ukraine conflict, which he said has strained economic relations between Berlin and Beijing.