Habeck, who has personally spoken out against punitive tariffs as a last resort, took with him a low-key business delegation and will address trade relations while also pressing China on hot-button issues like Russia’s war in Ukraine.
Germany is seeking to broaden access for its companies to the vast Chinese market, while also trying to “de-risk” its economy from being too reliant on any one country.
Habeck’s trip comes a week after the European Commission proposed tariffs of up to 38.1% on electric vehicle imports from China, marking a new low point in economic relations and prompting China to threaten retaliation.
“China is an indispensable partner for global challenges, such as combating climate change,” Habeck said before leaving. “It is therefore important that we remain in dialogue and talk about fair and equal competitive conditions.”
As Europe’s largest economy, Germany’s voice carries particular weight, and its leading car manufacturers have vociferously opposed the EU tariffs. It has urged dialogue while also expecting China to compromise.For their part, Chinese automakers have urged Beijing to hike tariffs on imported European gasoline-powered cars in retaliation, the state-backed Global Times said on Wednesday.Retaliatory tariffs sought
In a closed-door meeting on Tuesday also attended by European car companies, China’s auto industry “called on the government to adopt firm countermeasures [and] suggested that positive consideration be given to raising the provisional tariff on gasoline cars with large-displacement engines,” according to the report.
The meeting, organised by China’s Ministry of Commerce, was attended by SAIC, BYD , BMW, Volkswagen and its Porsche division, two sources said. The main aim of the meeting was to put pressure on Europe and lobby against the tariffs to shield its car industry from Chinese competition, they added. The meeting was also attended by Mercedes-Benz, Stellantis and Renault, two separate sources said. The ministry did not immediately respond to a faxed request for comment.
