Just In : China Warns of Possible ‘trade war’ with EU
Beijing warned on Friday, 21 June 2024, that rising tensions with the European Union over electric vehicle imports might spark a trade war, as Germany’s Economy Minister landed in Beijing with suggested tariffs high on his agenda. Robert Habeck’s three-day trip to China is the first by a top European Official since Brussels suggested high tariffs on Chinese-made electric vehicles to combat excessive subsidies. China has responded with countermeasures as well as severe condemnation from its leaders.
Chinese automakers pushed Beijing to raise duties on imported European gasoline-powered vehicles this week, and the Government opened a dumping probe into EU pork imports in response to the EU Commission’s move.
A representative for China’s trade Ministry said “Responsibility lies entirely with the EU side. In its countervailing duties investigating the European side intimidated and attacked Chinese firms, threatened to apply punitively high tariff rates, and demanded unduly wide information,” the statement continued.
Habeck’s visit is viewed as an opportunity for Germany, Europe’s largest economy, to explain to Chinese Officials the recent tariff announcement while reducing the possibility of Chinese reprisal, which might affect German industries. Germany’s voice is particularly powerful, and its big car manufacturers have vocally opposed the EU tariffs. Berlin has encouraged talks while also expecting China to concede.
The country’s automakers would be the most vulnerable to any counter-moves from China since about one-third of their sales came from the 18.6 trillion-dollar economy last year. The EU’s action on EV tariffs has brought trade relations with the world’s second-largest economy to a new low.
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However, Chinese State Media depicted his visit as an opportunity to ease tensions. Some experts advised Germany to seek consensus, according to the Chinese State-controlled Tabloid Global Times on Friday, 21 June 2021. (NAN)
