As Chancellor Olaf Scholz prepares for his trip to China, the Association of the German Automotive Industry (VDA) has expressed its opposition to EU punitive tariffs on electric cars from China. The VDA believes that subsidies for the industry in China will not solve the challenges facing the local auto industry and could have a negative impact in the event of a trade conflict. The association president, Hildegard Müller, emphasizes the importance of dialogue between both sides regarding the EU anti-subsidy investigation, as the current business with China supports a large number of jobs in Germany.
Müller warns that a trade conflict could endanger the transformation towards electromobility and digitalization, which is financed by revenue generated by the German car industry in China. The market share of electric cars from China in Germany has risen to ten percent in the first three months of the year, with Chinese brands increasing their sales while other manufacturers saw declines. The EU Commission has launched an investigation into market distortions caused by Chinese subsidies for electric cars, which could lead to punitive tariffs on Chinese vehicles.
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