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volkswagen ceo: instead of imposing punitive tariffs on china, consider providing subsidies for investment

2024-10-06

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[text/observer network chen sijia] on october 4, local time, the european union voted to adopt a tariff proposal against china, causing concerns among european automakers. according to a reuters report on the 6th, volkswagen group ceo oliver blum told german media that day that the eu should consider adjusting tariffs on chinese electric vehicles. instead of imposing punitive tariffs, it should promote chinese companies to invest in europe.

bloom is worried that imposing additional tariffs on chinese electric vehicles may lead to china taking countermeasures. "if these unilateral tariffs are implemented, this risk will definitely exist." he believes that it is necessary for the german government to continue to express its opposition to tariffs to the eu. position, hoping that the eu can reach a "solution that is fair to both sides" with china before the tariffs take effect.

bloom believes that the eu should reconsider its tariff policy and allow chinese automakers to avoid tariffs through investment. he said: "instead of imposing punitive tariffs, we should actively consider providing subsidies for investment. companies that invest in europe, create jobs and cooperate with local companies should benefit in terms of tariffs."

asked whether chinese carmakers should be allowed to produce electric cars in germany without punitive tariffs, blume replied: "yes, that is one way to do it. this applies not only to chinese companies but also to applicable to other regional companies investing in europe, it can have a positive impact on the economy.”

on the 4th, eu member states voted 10 in favor, 5 against, and 12 abstentions to approve the proposal to impose countervailing tariffs on chinese electric vehicles. the eu currently imposes a 10% tariff on chinese electric vehicles. according to the final draft pre-disclosure on august 20, the eu plans to impose a superimposed tariff of 17% to 36.3% on imported electric vehicles manufactured by chinese companies.

the european commission issued a statement after the vote, saying that the tariff proposal against china has received the "necessary support" from eu member states and that the final implementation regulations for the additional tariffs will be announced by october 30 at the latest, which will include the european commission's tariffs on china. the final results of the so-called countervailing investigation on electric vehicles and relevant regulations will take effect from the next day.

director of the trade defense department of the european commissionmartinlucas said at the end of september that even after the vote was passed and the tariffs were enacted, the european commission was still willing to continue negotiations with china to reach a potential agreement to avoid the imposition of tariffs. he said at the time that technical negotiations between the eu and china had escalated to almost a daily basis and might last beyond the end of october.

but the result sparked concern and dissatisfaction among major european automakers. hong kong’s south china morning post reported,mercedes-benzthe group responded quickly, saying the tariffs were a mistake. volkswagen asked the european commission to reach a negotiated solution with china before the tariffs take effect.

hildegard müller, chairman of the german automobile industry association (vda), said on the 4th that the german government’s vote against sent the “right signal” to the outside world. “for the sake of economy, prosperity and growth, the german government supports the interests of the european and german automotive industry and its employees on such an important issue and voted against today’s eu decision”.

bloomberg news of the united states also pointed out that the high number of abstentions in this vote reflects the doubts within eu member states, indicating that many member states are uneasy about the possibility of provoking a "trade war" with china.

regarding the eu member states’ representatives voting to pass the european commission’s draft final ruling on the electric vehicle countervailing case, a spokesman for the chinese ministry of commerce said on the 4th that china has taken note of relevant reports.

the spokesperson said that china's position on the eu's anti-subsidy case against china's electric vehicles is consistent and clear. china firmly opposes the eu's unfair, non-compliant and unreasonable protectionist practices in this case and firmly opposes the eu's anti-subsidy case against china. china has imposed countervailing duties on electric vehicles in china. china's electric vehicles adhere to market leadership and are based on full competition. through continuous independent innovation, they have increased the world's high-quality supply of green public goods and made important contributions to the global response to climate change. the eu's protectionist practices seriously violate wto rules and interfere with the normal international trade order. they not only hinder china-eu trade and investment cooperation and delay the eu's own green transformation process, but will also affect the global joint efforts to deal with climate change.

the spokesperson pointed out that china firmly opposes the eu's final draft ruling, but also notes the eu's political will to continue to resolve the issue through negotiations. the china-eu technical team will continue negotiations on october 7. china hopes that the european side will clearly realize that imposing additional tariffs will not solve any problems, but will only shake and hinder the confidence and determination of chinese enterprises in investing and cooperating with europe. china urges the eu to truly demonstrate its political will and return to the right track of resolving trade frictions through consultations. china will also take all measures to firmly safeguard the interests of chinese enterprises.

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