Beijing warned on Friday (June 21) that escalating frictions with the European Union over electric vehicle imports could trigger a trade war, as Germany's economy minister arrived in the Chinese capital with the proposed tariffs high on his agenda.

Beijing

Beijing has issued a warning of a potential trade war with the European Union. The warning comes amid rising tensions over new EU tariffs on electric vehicle imports from China. Germany's economy minister, Robert Habeck, is in Beijing to discuss the proposed tariffs as part of a three-day trip. Habeck has emphasized the need for an updated and long-term strategy on China that reflects Europe's broader approach. He noted a lack of direction in Germany's medium-term relationship with China.

The visit by Habeck marks the first trip by a senior European official since Brussels announced the new tariffs. The move has led to countermeasures from China, including calls from Chinese automakers for increased tariffs on imported European gasoline-powered cars. Additionally, the Chinese government launched an investigation into EU pork imports. Habeck's visit aims to clarify Germany's stance on the tariffs and mitigate the risk of retaliatory actions from China that could impact German businesses.

Germany's significant automotive industry has voiced opposition to the EU tariffs due to their reliance on the Chinese market, where a substantial portion of their sales occur. Berlin has called for dialogue with China while expecting some compromise. Chinese state media has framed Habeck's visit as an opportunity to reduce tensions, emphasizing the importance of finding common ground.



China warns of possible 'trade war' with E.U.

Beijing warned Friday it could enter a trade war with the European Union. The comments come as tensions escalate over the EU's new tariffs on electric vehicle imports from China. Germany's economy minister Robert Habeck arrived in Beijing Friday with the proposed tariffs high on his agenda. He said his country's strategy on China needs to be updated to include a longer-term plan and take account of Europe's approach. He further argued the strategy lacks direction on how Germany sees the medium-term relationship between the two countries. Habeck's three-day trip is the first by a senior European official since Brussels proposed the duties. The move led to countermeasures by China and harsh criticism from Beijing. This week alone, Chinese automakers urged authorities to hike tariffs on imported European gasoline-powered cars. The government also launched a dumping probe into EU pork imports. Habeck's visit is seen as an opportunity for Germany to explain the recent tariff announcement. It's also a chance to calm the risk of retaliation from China that could harm German businesses. Germany's voice carries particular weight and its leading car manufacturers have opposed the EU tariffs. Berlin has urged a dialogue while also expecting China to compromise. The country's carmakers would be the most exposed to any countermoves from China as a third of their sales came from there last year. Chinese state media portrayed Habeck's visit as a chance to ease tensions. The state-controlled Global Times said Germany should look for consensus.

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