Wissing: Trade war with China would be a "catastrophe" for Germany

Federal Transport Minister Volker Wissing (FDP) has emphatically warned of the consequences of high punitive tariffs in the EU on electric cars from China. "No one can wish for a trade war with China. It would be a disaster for Germany and it would also not be advantageous for the European Union," said the FDP politician on Thursday in a video interview with the German Press Agency in Berlin. China has threatened to file a lawsuit with the World Trade Organization (WTO). The EU Commission is threatening high provisional punitive tariffs on e-cars from China. When asked how he assessed this step, Wissing said:

"I am completely against it. The task ahead of us is to ensure that we can compete in the market and not to restrict competition. Restricting competition through high tariffs leads to a decrease in competitive pressure on European manufacturers. And the consumers will be the ones to suffer, because only competition guarantees low prices with the best quality."

Brussels sees competition distortion

The EU Commission has been investigating since last autumn whether e-cars in China benefit from competition-distorting subsidies. According to the Commission, Chinese electric cars are usually about 20 percent cheaper than models manufactured in the EU. EU Commission President Ursula von der Leyen said:

"The price of these cars is artificially lowered by huge state subsidies - this distorts our market."

Whether tariffs of up to 38.1 percent will actually have to be paid depends, according to the Commission, on whether another solution can be found with China. They would then be retroactively levied from the beginning of July in certain cases, should the EU agree to impose higher tariffs in the long term.

China wants to defend interests

"China reserves the right to file a lawsuit with the World Trade Organization and will take all necessary measures to resolutely defend the legitimate rights and interests of Chinese companies," said He Yadong, a spokesman for the Chinese Ministry of Commerce, on Thursday.

The punitive tariffs would not only disrupt "mutually beneficial cooperation" in the area of new energy vehicles, but also distort the global automotive industry and supply chain. The European approach is suspected of violating WTO rules and is a "blatant act of trade protectionism."

Wissing criticizes Commission

The EU Commission must clearly state what it accuses the Chinese side of, Wissing said. Tariffs are being discussed. But what exactly the Chinese side is being accused of, the EU Commission still owes the public. "That's why I find this approach extremely questionable. I would suggest discussing with our global trade partners the things we consider in need of improvement and working on keeping the markets open and maintaining competition."

Germany is a competitive economy with an industry that produces top products for the whole world. "We rely on open markets, and we can also inspire many people around the world to buy our products with our top quality from Germany in open markets," said the minister. Trade barriers should not be erected.

Wissing: Lower prices for electric cars necessary

"My concern has always been that we won't be able to quickly convince consumers to switch because the prices for new vehicles are too high," Wissing said. "That's why we need a solution here, but we won't get it by restricting competition. If cheaper vehicles from abroad are kept off the European market, there is no reason for European manufacturers to offer cheaper vehicles."