China warned on Friday that growing tensions with the European Union over imports of electric vehicles could potentially escalate into a trade war. This caution came as Germany’s economy minister arrived in Beijing with proposed tariffs prominently featured on his agenda.
Robert Habeck’s three-day visit to China marks the first such trip by a senior European official since Brussels suggested imposing substantial tariffs on Chinese-made electric vehicles to counteract perceived excessive subsidies.
This has prompted retaliatory actions from China and strong criticism from Chinese leaders. Just this week, Chinese automakers have called on Beijing to increase tariffs on imported European gasoline-powered cars, while the government initiated a dumping investigation into EU pork imports in response to the EU Commission’s actions.
Habeck’s visit is viewed as a chance for Germany, the largest economy in Europe, to clarify the recent tariff announcement to Chinese officials and mitigate the potential for retaliatory actions from China that could adversely affect German businesses.
Germany’s influence is significant, especially considering the strong opposition of its major car manufacturers to the EU tariffs. Berlin has advocated for dialogue while also anticipating a willingness from China to find a compromise.
