News
German Car Brands Fear Trade War With Chinese Counterparts
German car manufacturers are opposing possible European import duties on electric cars from China. The European Commission announced last year that it would launch an investigation into potentially market-distorting Chinese subsidies for electric vehicles, which could lead to punitive levies. But the German Association of the Automobile Industry (VDA) fears negative consequences if a trade war with China breaks out, says President Hildegard Müller in an interview with Die Welt.
“Anti-subsidy measures such as additional levies do not solve the problems for the European and German car industries. On the contrary, the import duties envisaged by the European Commission could quickly have a negative impact in the event of a trade conflict,” Müller told the German newspaper.
The European Commission states that China heavily subsidizes its electric car manufacturers, allowing them to produce cheaper. In doing so, they threaten to push European competitors out of the market with an unfair advantage.
