24/7 Space News
CAR TECH
Top German minister on peace mission amid China EV tariffs row
Top German minister on peace mission amid China EV tariffs row
By L�a PERNELLE
Frankfurt, Germany (AFP) June 21, 2024

Germany's Vice Chancellor Robert Habeck will arrive in Beijing on Friday on a last-ditch mission to avoid a damaging trade war with China after the EU threatened to slap additional tariffs on electric cars.

If a compromise is not reached between Brussels and Beijing, the European Commission will impose extra tariffs of up to 38 percent on Chinese electric vehicles it says have benefitted from unfair subsidies.

The new higher tariff rate would first be imposed provisionally, before becoming definitive in November.

"What is important now is that we talk," Habeck said following the bombshell EU announcement. Using tariffs to exert political pressure was "the last resort and often the worst option", he said.

In China, the minister, who looks after the government's climate and economy briefs, will have meetings with his counterparts for industry and trade.

Officials in Habeck's ministry have noted that he is "not speaking and not negotiating in the name of the European Commission" -- however, Brussels will need the support of Europe's largest economy for its next steps.

Germany's large and influential auto manufacturers are fearful of a trade war with Beijing that could rebound on their business activities in China.

For Mercedes-Benz, Volkswagen and BMW the Chinese market represents up to 36 percent of their sales.

- Solution finder -

China topped the list of Germany's trading partners in 2023 for the eighth year in a row, ahead of the United States.

"I think Habeck probably is hoping to find some sort of deal or solution and at the very least to get China to not retaliate," Jacob Gunter, senior analyst at China-focused think-tank MERICS.

For China, the goal "will be to try to get Germany to play a bigger role in getting rid of, or at least mitigating, the EV tariffs that Brussels set up last week", Gunter said.

It would be a hard ask for Habeck to get Beijing to reduce its subsidies for electric vehicles, Gunter said.

But convincing China not to pursue a "significant retaliation" would be a good outcome.

However, speaking in South Korea before arriving in China, Habeck downplayed the chances of finding a quick solution to the dispute, saying that the "signs are rather challenging".

China said Monday it had launched an anti-dumping investigation into pork imports from the European Union, threatening Spanish exports.

But Beijing has an interest in avoiding an escalating trade conflict with the EU and other countries trying to shield their economies from Chinese imports, according to experts.

- 'Market distortions' -

Another problem for Habeck is that the various German companies present in China are not all on the same page about tariffs.

Machinery and equipment manufacturers, which are particularly exposed to Chinese competition, have taken a tougher line.

"The unfair subsidising of Chinese businesses by the state must stop," said Germany's influential engineering association VDMA, calling on Habeck to broach the "market distortions" created in Europe by Beijing's economic policy.

In a signal that Habeck will not simply be a mouthpiece for carmakers, not one of the auto giants is in his delegation -- unlike the group that travelled with Chancellor Olaf Scholz to China in April.

Habeck's party, the Greens, are also decidedly more critical of China than Scholz's Social Democrats.

If China were to retaliate with tariffs on car imports from Germany, it is not clear that this would have a "meaningful impact" on the country's auto sector, which mostly exports its most expensive -- and less price-sensitive -- models to China, said Gunter.

At the same time, the traditional auto groups faced growing competition from cheaper Chinese manufacturers in their domestic European market.

In the space of just three years, the import volumes of Chinese cars have increased ten-fold, according to the German statistics agency.

lep/smk/lgo/sea/sr/lth

Volkswagen

BAYERISCHE MOTOREN WERKE AG

Related Links
Car Technology at SpaceMart.com

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
CAR TECH
Italy fines car firm for hiding China production
Milan (AFP) June 20, 2024
Italy's competition watchdog on Thursday fined car firm DR Automobiles six million euros ($6.4 million) for covering up the Chinese origin of its vehicles. The far-right government has launched a campaign against companies that seek to portray foreign-produced cars as Made in Italy. The competition authority said DR Automobiles "indicated in a misleading way Italy instead of China as the place of production for cars marketed under the brands DR and EVO". "These were cars produced in China, e ... read more

CAR TECH
Ecuador to impose visas for Chinese tourists amid influx

Kayhan Space Launches Comprehensive Spaceflight Intelligence Platform

NASA delays return of Starliner astronauts from space station

NASA cancels ISS spacewalk after 'spacesuit discomfort'

CAR TECH
Boeing Starliner return to Earth set for June 26

Ariane 6 to launch RAMI Deployer for interplanetary missions

FAA seeks public input on SpaceX Starship's environmental impact in Florida

Boeing Starliner spacecraft springs more leaks on way to ISS

CAR TECH
NASA Observes Mars Illuminated During Major Solar Storm

Water frost discovered on Mars' tallest volcanoes

Frost discovered on top of giant Mars volcanoes

New analysis suggests lack of subglacial lake on Mars

CAR TECH
Hainan Launch Center Completes Construction for First Mission

Ten make the cut for China's fourth batch of astronauts

China announces first astronaut candidates from Hong Kong, Macau

China Open to Space Collaboration with the US

CAR TECH
Apex secures $95M in Series B Funding to Scale Satellite Bus Production

Satellite megaconstellations could impact ozone hole recovery

Fired SpaceX workers sue Elon Musk over workplace abuses

Yahsat Contracts Airbus for New Al Yah Satellites

CAR TECH
Italy seeks to reopen mines in critical minerals quest

Amazon to invest extra 10 bn euros in Germany

Kyocera Installs Fine Cordierite Ceramic Mirror on ISS for Optical Communications

Canada blocks rare earths sale to China

CAR TECH
Discovery of Four Mini-Neptunes Around Red Dwarfs

Laser tests reveal new insights into key mineral for super-Earths

NASA and ESA explore habitability of exoplanets with Chandra and XMM-Newton

NASA satellite detects smaller object in black hole pair for the first time

CAR TECH
Understanding Cyclones on Jupiter Through Oceanography

Unusual Ion May Influence Uranus and Neptune's Magnetic Fields

NASA's Europa Clipper Arrives in Florida for Launch Preparation

New Earth-Based Telescope Images of Jupiter's Moon Io Match Spacecraft Quality

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.