Chinese electric vehicle (EV) manufacturers have called on Beijing to implement stringent countermeasures, including import duties of up to 25% on large-capacity European Union (EU) cars, in retaliation for the EU's recently announced tariffs on Chinese-made EVs. The request was made during a closed-door meeting at the Ministry of Commerce in Beijing, attended by representatives from four Chinese and six European automakers, along with industry and research bodies.
The meeting, reported by state network CCTV, revealed unanimous opposition from both Chinese and European participants to the EU's additional duties. Chinese companies criticized the EU for allegedly abusing its investigative powers to expand the scope of its anti-subsidy investigation, which now includes detailed inquiries about battery technology.
Meanwhile, the import of Chinese electric cars into Germany continues to grow despite the looming tariffs. According to the Federal Statistical Office, China's share of electric car imports to Germany rose to 40.9% in the first four months of 2024, even though the total number of vehicles imported from China decreased by 15.7% compared to the previous year. This rise in market share is attributed to a sharper decline in imports from other countries.
In 2023, Germany imported 129,800 electric cars worth €3.4 billion from China, marking a tenfold increase in volume and value compared to 2020. Most of these imports are not solely from Chinese brands; Western car manufacturers also produce vehicles in China for various global markets, including Germany.
The EU Commission's decision to impose higher tariffs on Chinese EVs has prompted a response from German officials. Economics Minister Robert Habeck is scheduled to visit China with a delegation of parliamentarians and business representatives to address the issue. The German car industry is concerned about potential Chinese countermeasures and the impact of higher tariff rates on vehicles produced in China by German manufacturers.
Federal Transport Minister Volker Wissing has criticized the proposed EU tariffs, calling them 'destructive' for the European car industry. The ADAC, Germany's largest automobile club, echoed these concerns, warning that such measures could hinder the automotive industry's innovation and the political goal of achieving 15 million electric vehicles by 2030.
- The closed-door meeting in Beijing highlighted the tension between Chinese and European automakers over the EU's new tariffs. Chinese companies accused the EU of overstepping its investigative powers, particularly with demands for detailed information about battery technology.
- Despite the potential for punitive tariffs, the import of Chinese electric cars into Germany has shown resilience. The Federal Statistical Office reported that while the total number of electric car imports to Germany fell by 45.3% in the first four months of 2024, imports from China declined by a smaller margin, resulting in an increased market share for Chinese EVs.
- German officials are actively seeking solutions to mitigate the impact of the EU's tariffs. Economics Minister Robert Habeck's upcoming visit to China is seen as a crucial step in addressing the concerns of the German car industry. The visit aims to foster dialogue and find a resolution that avoids further escalation and potential countermeasures from China.
- The significant increase in Chinese electric car imports to Germany underscores the growing interdependence between the two countries' automotive industries. This relationship is further complicated by the fact that many Western car manufacturers produce vehicles in China for export to global markets, including Europe.
- Federal Transport Minister Volker Wissing and the ADAC have both voiced strong opposition to the EU's proposed tariffs. They argue that such measures could disrupt the automotive industry's progress towards achieving environmental and innovation goals, particularly the target of 15 million electric vehicles on European roads by 2030.
