The EU’s imposition of tariffs on Chinese electric vehicles is a wrong decision

In July this year, the European Commission announced that it had decided to impose a temporary countervailing duty on electric vehicles imported from China. This is a wrong decision, and the German Federal Association for Economic Development and Foreign Trade firmly opposes this decision.

Germany and the European Union have set an ambitious goal of achieving carbon neutrality by 2050, which can only be achieved through joint efforts and cooperation by all parties. The low-carbon transformation of the transportation industry in Germany and Europe is an important cornerstone for achieving the goal of carbon neutrality. Germany’s goal is to register 15 million electric vehicles by 2030 to achieve net zero emissions in the transportation sector. However, from the current perspective, achieving this goal faces great challenges. Due to the high price and lack of variety of electric vehicles in the European market, the number of electric vehicle registrations in Germany has declined this year. According to reports, from January to May this year, the number of new registrations of electric vehicles in Germany was only 140,000, a decrease of 16% from the same period last year. It is not only in the interests of consumers for EU consumers to buy Chinese electric vehicles at reasonable prices, but also helps Europe promote green and low-carbon transformation.

China has become an innovation-driven force in the field of electric transportation and plays an important role in the green and low-carbon transformation of the global transportation industry. Electric vehicle suppliers from China will help activate the market, boost the overall development of the German electric vehicle market, and make electric vehicles more recognized by consumers. The accelerated popularization of electric vehicles will play an important role in promoting the construction of charging infrastructure and the development of battery technology. The EU’s temporary countervailing duties on electric vehicles imported from China hinder mutually beneficial cooperation and are not conducive to green and low-carbon transformation.

China’s electric vehicle industry has and will continue to be a global innovation model. In recent years, Chinese automakers have made positive progress in intelligent technology, which is of reference value to German automakers. Chinese automakers are actively investing in Europe and providing European users with innovative technical solutions by continuously improving their R&D capabilities in Europe. This has not only effectively enhanced the brand image and market influence of Chinese automakers, but also made important contributions to the transformation of the German and European auto industries.

China is an important sales market for German automakers. German automakers such as BMW, Mercedes-Benz, and Volkswagen continue to be optimistic about the Chinese market. The temporary countervailing duties on electric vehicles from China affect the confidence of German automakers and may affect automobile manufacturing, a pillar industry of the German economy. At present, Germany’s economic development is already facing challenges, and trade frictions between Europe and China may further damage Germany’s development prospects. We strongly support the statement of Hildegard Mueller, President of the German Association of the Automotive Industry, that the EU should negotiate with China to resolve the issue. We also welcome the statements of industry figures such as Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG, that the German automotive industry does not need to increase trade barriers. German Chancellor Scholz also believes that trade protectionism should be opposed and global competition is welcomed.

To achieve climate goals, Germany needs more electric vehicles. We hope that more electric vehicle brands will appear on the market, especially Chinese electric vehicles with cost-effective advantages, to help Germany advance green and low-carbon transformation faster.

The author is chairman of the German Federal Institute for Economic Development and Foreign Trade