During a visit to China, German Economy Minister Robert Habeck emphasized that the proposed European Union tariffs on Chinese goods are not intended as a punishment. This marks the first by a senior European official following the EU’s proposal of hefty duties on imports of Chinese-made electric vehicles in response to alleged excessive subsidies. Zheng Shanjie, the chairman of China’s National Development and Reform Commission, had warned of a potential trade war ahead of Habeck’s arrival in Beijing.

In a climate and transformation dialogue session, Habeck clarified that the EU’s approach to tariffs differs from countries like the U.S., Brazil, and Turkey, who have implemented punitive tariffs. He emphasized that the European Commission had thoroughly examined whether Chinese companies benefitted unfairly from subsidies over a nine-month period. Any resulting countervailing duty measures are meant to compensate for these advantages rather than serve as punishment. The EU believes that this will help level the playing field with China in terms of trade practices.

When meeting with Zheng Shanjie, Habeck reiterated that the proposed EU tariffs aim to level the playing field with China. Zheng responded by affirming China’s commitment to protecting its companies and maintaining good trade relations with Europe. This dialogue reflects the efforts made by both sides to address trade frictions and reach a mutually beneficial resolution.