Automotive industry Scholz relies on negotiations with China in dispute over car tariffs

German Chancellor Olaf Scholz is backing a negotiated solution with China in the dispute over the EU's punitive tariffs on Chinese electric cars. It is about a level playing field.

"Of course we have to protect our economy from unfair trade practices," said the SPD politician at a business day organized by the BGA foreign trade association in Berlin. "However, our reaction as the EU must not lead to us damaging ourselves." Negotiations with China on electric vehicles must therefore continue.

Scholz went on to say that action must be taken where cheap Chinese imports were actually harming the economy, for example in the case of steel. The World Trade Organization and its principles must be respected more, said the Chancellor.

The jurisdiction for settling trade disputes must function again, then there would be less need for tariff disputes. China should renounce the special treatment it enjoys as a developing country.

The vote at EU level on the car tariffs is scheduled for Friday. Talks are currently underway on how the German government will vote.

Scholz received French President Emmanuel Macron in Berlin at midday. In the past, Macron had generally expressed his support for punitive measures against China's e-cars.

SDA