Chinese Commerce Minister Wang Wentao expressed high appreciation for Germany's alignment with China in opposing the European Union's tariff hikes on Chinese electric vehicles (EVs), while condemning such actions as blatant protectionism and unfair competition.
Wang made the remarks during his meeting with Robert Habeck, Germany's Vice-Chancellor and Minister for Economic Affairs and Climate Action, in Beijing on Saturday.
Habeck's three-day visit to China coincides with escalating trade tensions between China and the EU.
The European Commission on June 12 unveiled provisional tariffs ranging from 17.4 percent to 38.1 percent for Chinese EV makers. It accused China of "unfair subsidization" in its EV value chain but did not explain the factual or legal basis for the tariff plan.
"These actions seriously disrupt the international economic and trade order, hindering the global green and low-carbon transition. In fact, this is an attempt to suppress the development of Chinese industries, which we consider blatant protectionism and unfair competition," Wang said.
Recognizing the alignment between China and Germany in opposing the EU's imposition of new tariffs, Wang said, "We note that Chancellor Scholz recently publicly opposed this investigation, calling it a huge mistake. You also believe that imposing punitive tariffs is the worst option and support resolving this case through dialog and negotiation, which I highly appreciate."
"I completely agree with what you just said. Both China and Europe, as well as China and Germany, have greatly benefited from mutual trade. We have always benefited from an open global market, but we are now entering a new phase where trade protectionism is rising in various forms, which is very concerning to us," Habeck said.
Habeck further noted that heightened tariffs would present a range of threats and challenges to the global economy.
"We are seeing increasing tariffs, local production requirements, and financing restrictions. These measures will raise product prices, reducing consumer purchasing power and hinder investment and innovation. We urgently need investment and innovation in technology, especially in green, low-carbon development technologies. This is detrimental not only to the global economy but also to achieving our other goals," Habeck said.
Wang expressed China's willingness to start negotiations with the EU as soon as possible, provided the bloc demonstrates goodwill. But he emphasized that if the EU insists in its approach, China will take all measures necessary to defend its own interests, including filing lawsuits such as through the WTO dispute settlement mechanism, to firmly defend the legitimate rights and interests of Chinese companies.