Before Chancellor Olaf Scholz’s visit to China, the Association of the German Automotive Industry (VDA) expressed their opposition to the EU imposing punitive tariffs on electric cars from the People’s Republic. According to VDA President Hildegard Müller, subsidies for the industry in China may not address the challenges facing the local auto industry and could have a negative impact in the event of a trade conflict. Müller emphasized the importance of engaging in dialogue regarding the EU anti-subsidy investigation, as the current business with China secures many jobs in Germany.
The VDA President also highlighted that a trade conflict could jeopardize the transformation towards electromobility and digitalization, which is funded by the German car industry’s operations in China. Chinese electric car market share in Germany has been increasing, with Chinese companies pushing their products into the market. Chancellor Scholz’s visit to China is focused on economic relationships, with talks scheduled with the Chinese leadership in Beijing.
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