EU imposes heavy tariffs on Chinese electric vehicles, Germany "reassures" and says it's not a "punishment".

German Vice Chancellor and Economy Minister Robert Habeck arrived in Beijing for a three-day visit, amid recent tense negotiations over high import tariffs on Chinese electric vehicles (EVs) sold in the European Union (EU).

German Vice Chancellor and Economy Minister Robert Habeck and Chairman of the National Development and Reform Commission (NDRC) Zheng Shanjie before a meeting in Beijing, China, on June 22. (Source: Reuters)

The EU's proposed tariffs on Chinese goods are not a "punishment," German Economy Minister Robert Habeck told Chinese officials in Beijing on June 22.

Habeck's visit to China was the first by a high-ranking European official since Brussels proposed heavy tariffs on imports of Chinese-made electric vehicles (EVs) to counter what the EU considers excessive subsidies.

On June 22, China warned before his arrival that escalating tensions with the EU over electric vehicles could trigger a trade war.

Mr. Habeck is the first European minister to visit China since the EU announced its proposed tariffs. Brussels argues that the “generosity” of Beijing’s subsidies gives Chinese carmakers an unfair competitive advantage over European manufacturers. Mr. Habeck said that over the past nine months, the European Commission has been scrutinizing whether Chinese companies have unfairly benefited from these subsidies.

China has opposed the proposal, threatening a trade war as its automakers urged Beijing to impose import tariffs on European internal combustion engine vehicles.

Both China and Germany viewed the trip as an opportunity for Minister Habeck – as the spokesperson for Europe's largest economy and someone with deep ties to Chinese industry – to ease tensions over tariffs, which German automakers oppose for fear of retaliation.

China accounted for nearly one-third of Germany's total car sales last year.

Habeck himself has criticized Germany's China strategy, calling it short-sighted and incompatible with China's strategies toward Europe.

China has been Germany's top trading partner for eight consecutive years – a record that remained unbroken until this year when German trade with the US surpassed that with China. In May, German exports to China fell by 14%, while exports to the US increased by 4.1%.

Source: https://baoquocte.vn/eu-ap-thue-nang-voi-xe-dien-trung-quoc-duc-xoa-diu-va-noi-khong-phai-la-mot-su-trung-phat-275945.html