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Germany’s vice chancellor said the “door is open for talks” with Beijing over the EU tariffs but took a tougher stance on Chinese exports to Russia during her first visit to mainland China by a senior European official since the tariffs were announced.
Economy and Climate Minister Robert Harbeck said he expected quick talks between Beijing and Brussels and that tariffs of up to 38% on Chinese-made electric cars would be “not punitive”.
“There is room for discussion,” he told a news conference in Shanghai. “I look forward to discussions between the European Commission and the Chinese trade minister in the coming days.”
Habeck was conciliatory on the tariffs, which are yet to be finalized, but was critical of rising Chinese exports to Russia and pointed to Germany’s own efforts to block the export of “dual-use” goods that could have military uses.
“If you look at the trade statistics, trade between China and Russia increased by more than 40 percent last year,” he said. “Obviously energy is a big part of it. [of] But about half of it is for dual-use products.”
“These are technically battlefield products and this has to be stopped.”
Germany has close economic ties with China – it’s Germany’s largest trading partner and a key market for its auto industry – and the German government has been trying carefully to navigate rising tensions between Beijing and Washington that have escalated sharply since Russia’s 2022 invasion of Ukraine.
Harbeck also visited Beijing, where he met with Commerce Minister Wang Wentao and National Development and Reform Commission Chairman Zheng Shenjie. He said he discussed energy, climate and human rights issues with Chinese officials as part of “intense discussions.” A much-anticipated meeting with Premier Li Qiang did not take place.
Before flying to mainland China, Harbeck said he hoped the visit would help ease trade tensions between China and the EU, which is investigating government subsidies for the mainland’s electric vehicle sector. “The omens are pretty grim,” Harbeck added.
President Joe Biden this year imposed 100% tariffs on Chinese electric vehicles, higher than the EU’s but for much smaller U.S. imports.
German Chancellor Olaf Scholz met with Chinese President Xi Jinping in April and urged the Chinese president to pressure Russia to end its invasion of Ukraine. Scholz also petitioned Premier Li to grant German companies greater market access in mainland China.
Chinese President Xi Jinping and Russian President Vladimir Putin have touted their close ties and vowed to expand trade. Russia rose to China’s fifth-largest single trading partner last year, up from ninth in 2020, with trade reaching $240 billion. Chinese exports to Russia are expected to grow 46.9% in 2023 from the previous year, according to official data.
