BEIJING tariffs on Chinese goods proposed by the European Union are not a form of “punishment”, said Robert Habeck, Germany’s Minister of Economy as he addressed Chinese officials in Beijing on a Saturday.
On his first visit to China as a prominent European figure, he arrived amidst advanced EU plans for increased charges on importation of electric cars from China, which Brussels believes is due to excessive subsidies.
China warned yesterday before his arrival that increasing frictions with the EU over EVs could lead to a trade war.
“This is not about any punitive tariffs,” Habeck said during the plenary session of the climate and transformation dialogue.
This way different countries have implemented punishments such as Brazil, Turkey and US but not European Union stated the minister. “Europe does things differently.”
Habeck spoke about how for nine months now, the European Commission has carried out an exhaustive investigation if Chinese companies were beneficiaries of unfair subsidies.
According to him these are no penalties whatsoever as any countervailing duty measure ensuing from EC review was meant to offset these benefits that these companies enjoyed courtesy of Beijing.
“Fair market access should be achieved through common standards,” added Mr. Habeck.
During his meeting with Zheng Shanjie who is chairman of National Development and Reform Commission in China, Mr. Habeck told him that they intend to balance this business with Europe through implementing their proposed tariffs upon it.
Zheng replied: “we will do all we can to protect our own businesses”
Proposed import taxes on electric vehicles made in China would hurt both sides, he explained before hoping that within EU Germany shall provide guidance and “do the right thing”.
According to him, unfair subsidies accusations were wrong since new energy sector development in China had been based on recruitment competition between technology advantages market inducements and industrial chains holistically possessed by them
The development was based on competitiveness rather than subsidy or even unfair competition, Zheng said during the discussion.
On 4th July, EU provisional duties should be implemented and the investigation will run until November 2nd when definitive duties usually for five years could be imposed.
Habeck briefed Chinese officials on the importance of addressing EU report findings.
“It is important now to take seriously this opportunity that has been provided by this report and to start a talk and negotiation,” Habeck added
After his meeting with Mr. Shanjie, Mr. Habeck also had discussions with the Chinese Minister of Commerce Wang Wentao who said that he would hold a video conference on Saturday evening with Valdis Dombrovskis, the EU Commissioner on tariffs.
Climate dialogue
While trade tensions were expected to dominate discussions, the objective of this forum was deepening cooperation between two advanced economies in green path forward.
This is first plenary session for climate and transformational discussions after Germany signed a MOU in June last year with China for climate change issues as well as green development.
The nations recognized they have unique roles in preventing global warming from preindustrial levels by more than 1.5 degrees Celsius which scientists believe will cause worst effects.
China built almost 350 GWs renewable capacity in 2023 which represented over half global total and at current rates according to an International Energy Agency (IEA) released in June it can exceed its 2030 target this year if it maintains such progress as the second largest world economy.
Habeck lauded China’s growth in the renewable power sector, however, he cautioned that it is not enough to look at renewable energy alone; one must look at CO2 emissions as a whole.
However, coal still supplied almost 60% of all electricity consumed in China by 2023. “China has a coal-dominated energy mix,” said Zheng
On the other hand, about 75 percent of worldwide coal burnt is contributed by China, India and Indonesia for reasons including preference for inoculation over carbon release.
Zheng said that Chinese was putting up coal-fired power plants for security purposes.
“I still believe that the massive expansion of coal combustion could be carried out differently if one considered how renewables fit into this picture,” Habeck responded.
