China calls on Europe’s auto industry to resist EU trade barriers
Image: BYD (illustrative)
The Chinese government is urging European automakers and industry associations to take a proactive stance against the new trade restrictions imposed by the European Union. Trade Minister Wang Wentao conveyed this position in discussions with Hildegard Müller, president of the Association of the German Automobile Industry (VDA), and Ola Källenius, head of Mercedes and president of the European automakers’ association ACEA.
According to Automobilwoche, Wang said regarding his ministry that China aims to avoid the path of EU protectionism, which could lead to market closures and mutual exclusion on a global scale. While the VDA and ACEA associations did not issue direct statements on the content of recent discussions, they are currently reevaluating their previously pro-China stance.
The backdrop to this development is the growing loss of market share by German manufacturers such as BMW, Mercedes, and Volkswagen in China, along with rising sales figures for Chinese automakers in the EU market. Reportedly, the VDA is discussing a new strategy regarding China, with the overall direction already determined.
Potential tariffs are no longer ruled out by the association. VDA President Hildegard Müller emphasized in a statement that the EU must have effective tools for trade protection. In discussions about additional tariffs on Chinese plug-in hybrids, it is also necessary to ensure that state-induced selective advantages exist.
Additional tariffs on purely battery-electric vehicles produced in China have been in place for about two years. Currently, the EU Commission is considering similar measures for plug-in hybrids as part of negotiations with the Chinese government. Chinese imports are putting pressure on various European industries, particularly the automotive sector.
China has already threatened to take countermeasures against protectionist trends. At the same time, companies in the People’s Republic face the challenge of not losing the EU market as a sales outlet due to high overcapacity.
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Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions on ecomento.de. Learn more.
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