German Transport Minister Volker Wissing has voiced his opposition to the possibility of the European Union (EU) imposing protective tariffs on Chinese electric vehicles (EVs).
Wissing, in an interview with the Augsburger Allgemeine newspaper, expressed his reservations about the idea of creating market barriers. He emphasized the broader implications of such protectionist measures, stating, “Today, cars are being sealed off, tomorrow it’s chemical products, and each individual step in itself makes the world poorer.”
He stressed the importance of maintaining competitiveness in electric vehicle production, both for Germany and global markets, and warned against the risks of engaging in a trade war that could extend to other sectors and result in significant economic harm.
For the German automotive industry, where China stands as the largest customer, experts have raised concerns about the potential consequences of such measures. Ferdinand Dudenhoeffer, the director of the CAR Center Automotive Research Duisburg, highlighted the considerable risk and the need for cooperation with China rather than engaging in a trade war.
Volkswagen, a major player in the German car industry, delivered more than one in three of its vehicles to customers in China in August. Motor vehicles and parts, with a value of 6.3 billion euros ($6.7 billion), were Germany’s top-selling product by value in China during the first quarter, according to official figures.
A recent study conducted on behalf of the Foundation for Family Businesses indicated that if Germany were to economically decouple from China, its gross domestic product (GDP) could decline by 2 percent, resulting in annual losses of 57 billion euros.
China and the EU have a strong foundation for cooperation and share common interests in the automotive industry, as noted by a spokesperson from China’s Ministry of Commerce earlier this month. This partnership has evolved over years of development, and both parties have established a pattern of mutual support.
Volkswagen has reaffirmed its commitment to China through its “In China for China” initiative, including acquiring a 4.99-percent stake in the Chinese EV startup XPeng. Audi, a brand within the Volkswagen Group, has expanded its collaboration with its Chinese joint venture partner SAIC. Other automakers like Geely and Daimler are also engaged in close cooperation.
Wissing emphasized the significance of international trade in global markets as a means to generate wealth.