VW Chief Discusses Free Trade With China Officials
VW chief executive discusses free and fair trade with Chinese officials in Beijing after EU imposes electric vehicle tariffs
Volkswagen Group chief executive Oliver Blume spoke of “major challenges” to free and fair trade with industry and commerce officials in China on Friday, according to VW and the two ministries involved, as the company grapples with potential effects from the EU’s decision to impose steep tariffs on Chinese electric vehicle imports.
“The global economic development was one of the central issues,” said Blume in a statement.
“Free and fair trade between open markets is of utmost importance in this phase of major challenges.”
China welcomed VW to expand in the country, a ministry statement said.
EV tariffs
The European Commission last month announced it would impose duties of up to 38.1 percent on Chinese electric cars from 4 July.
Germany’s car industry, including VW, has publicly argued against the tariffs, which open up the possibility of retaliatory duties in one of the car companies’ biggest markets.
The EU’s executive body said it “provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers”.
The move follows the US’ imposition in May of a 100 percent tariff on Chinese EV imports, which the administration said was designed “to protect American workers and businesses from China’s unfair trade practices”.
The Commission said its investigation examined the likely consequences and impact of measures on importers, users and consumers of BEVs in the EU.
Trade war
“Consequently, the Commission has reached out to Chinese authorities to discuss these findings and explore possible ways to resolve the issues identified in a WTO-compatible manner,” the Commission said.
It said it would impose individual duties on BYD, Geely and SAIC, three of China’s biggest EV makers.
Chinese foreign ministry spokesperson Lin Jian said at the time that China would take all necessary measures to “firmly safeguard” its legitimate rights and interests.
Lin added the tariffs would damage China-EU economic and trade co-operation and the stability of the global car production and supply chain.
VW and other car companies are in a similar quandary to chip manufacturers, which have seen their shares dive in recent days amidst expectations the US may impose stricter tech export controls on China.
