Germany’s Habeck Says Trade Conflict With China Must Be Averted

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German Economy Minister Robert Habeck urged the European Union and China to find a political solution in a dispute over Chinese-made electric vehicles and said a trade conflict should be avoided “at all costs.”

The EU is aiming to hold a vote on introducing definitive tariffs on EVs imported from China on Sept. 25, people familiar with the plan told Bloomberg last week. Germany has joined fellow car manufacturer Spain in trying to persuade member states to drop the plan as they each have significant financial incentives to avert tit-for-tat measures.

In a statement published after talks in Berlin Tuesday with Chinese Commerce Minister Wang Wentao, Habeck said that while Germany embraces competition with the Asian nation, “it must be on fair terms.”

At the same time, he said officials in Berlin “absolutely want to avoid a trade conflict with spiraling tariffs that ultimately harms both sides.”

“That is why my position is clear: we need a political solution,” Habeck added. “The European Commission and China should make every effort to find a negotiated solution. I am also in contact with the European Commission on this.”

The EU’s executive arm launched the EV investigation last year, saying that Chinese companies unfairly benefit from state subsidies and are flooding Europe with excess production. In response, Beijing launched anti-dumping probes into EU exports of brandy, dairy and pork products.

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