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Germany assures China that doors still open to discuss EU surcharges
June 22, 2024
Article Body TextShanghai, China — <p>The German vice-chancellor assured China on Saturday that the "doors" remained "open" to discuss EU surcharges on Chinese electric vehicles, without reassuring Beijing which promised to "firmly defend" its manufacturers. </p> <p>Also, the 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, an important economic partner of Germany. </p> <p>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. </p> <p>China regularly denounces these upcoming surcharges on electric vehicles as being "purely protectionist." </p> <p>"These are not punitive customs duties," Habeck assured Zheng Shanjie, director of the Chinese Economic Planning Agency (NDRC) Saturday, according to a recording sent to AFP by the Chinese Embassy in Germany. </p> <p>"This is not a punishment," he insisted. </p> <p><strong>Up to 28% increase </strong></p> <p>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. </p> <p>These surcharges would become definitive from November. </p> <p>"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," Habeck said at a news conference in Shanghai. </p> <p>From Brussels, Olof Gill, the EU spokesperson, assured that European Trade Commissioner Valdis Dombrovskis and Chinese Trade Minister Wang Wentao "had a frank and constructive call on Saturday regarding the anti-subsidy investigation of the EU on electric cars produced in China." </p> <p>"Both sides will continue to engage at all levels in the coming weeks," he added. </p> <p><strong>China vows to defend 'rights' </strong></p> <p>Earlier Saturday, the tone had been firm on the Chinese side. </p> <p>"If the EU shows sincerity, China wants to start negotiations as soon as possible" on the surcharges, Trade Minister Wang told him, according to the English-speaking state television CGTN. </p> <p>"But if the EU persists in this course, we will take all necessary measures to defend our interests. This will include lodging a complaint with the dispute settlement mechanism of the World Trade Organization (WTO). We will firmly defend the legitimate rights and interests of Chinese enterprises." </p> <p>Beijing had already announced Monday that it had launched an anti-dumping investigation into imports of pork and pork products from the European Union. </p> <p>German and European manufacturers are strongly affected by cheaper Chinese competition. Imports of Chinese electric vehicles into Germany increased tenfold between 2020 and 2023. </p> <p>China argues that the success of its electricity sector is due to innovation and efficient supply chains, not subsidies. </p> <p>"(EU) protectionism will not protect (its manufacturers') competitiveness and will only slow down the global fight against climate change and the promotion of a green transition," Zheng told Habeck. </p> <p>"We expect Germany to show leadership within the EU and take the right measures," implying the cancellation of surcharges, he insisted, according to the New China agency. </p> <p><strong>Habeck blames Beijing </strong></p> <p>Such an epilogue seems improbable, with Habeck again blaming Beijing on Saturday for the surge in its trade with Moscow. </p> <p>"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. </p> <p>China has pledged not to supply weapons to Russia and calls for respect for the territorial integrity of all countries — including Ukraine. But China has never condemned Moscow for its invasion. </p> <p>Habeck assured Saturday that many "dual-use" goods (both civil and military) were used by Russia after passing through "third countries" — implying China. </p> <p>"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. </p> <p>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. </p>
Content TypeText
LanguageEnglish
NewsML Media TopicsArts, Culture, Entertainment and Media
Subtitles / Dubbing AvailableNo
NetworkVOA
Embargo DateJune 22, 2024 19:38 EDT
BylineAgence France-Presse
Brand / Language ServiceVoice of America - English
