Proposed European Union tariffs on Chinese goods are not a “punishment,” Germany’s Economy Minister Robert Habeck assured Chinese officials in Beijing on Saturday.
Habeck’s visit marks the first by a senior European official since Brussels proposed significant duties on imports of Chinese-made electric vehicles (EVs). The EU aims to counteract what it views as excessive subsidies provided to Chinese companies.
Ahead of Habeck’s arrival, China warned that rising tensions with the EU over EVs could potentially lead to a trade war.
“It is important to understand that these are not punitive tariffs,” Habeck emphasized during the first plenary session of a climate and transformation dialogue. He noted that while countries like the U.S., Brazil, and Turkey have used punitive tariffs, the EU operates differently. “Europe does things differently.”
Habeck explained that the European Commission had conducted a thorough nine-month investigation into whether Chinese companies had unfairly benefited from subsidies. Any resulting countervailing duty measure from the EU review “is not a punishment,” he stated, adding that such measures are intended to offset the advantages Chinese companies have received from Beijing.
“Common, equal standards for market access should be achieved,” Habeck asserted.
In his meeting with Zheng Shanjie, chairman of China’s National Development and Reform Commission, Habeck reiterated that the proposed EU tariffs aim to level the playing field with China.
Zheng responded, “We will do everything to protect Chinese companies.”
The EU provisional duties are set to apply by July 4, with the investigation continuing until November 2. Definitive duties, typically lasting five years, could be imposed thereafter.
Habeck encouraged Chinese officials to engage in discussions about the conclusions of the EU report. “It’s important now to take the opportunity that the report provides seriously and to talk or negotiate,” he said.
While trade tensions were a key topic, the primary goal of the meeting was to enhance cooperation between the two industrialized nations for the green transition.
This session was the first plenary of the climate and transformation dialogue since Germany and China signed a memorandum of understanding in June of last year to cooperate on climate change and the green transition.
Both countries acknowledged their special responsibility to prevent global warming from exceeding 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial levels, a threshold scientists consider crucial to avoiding the most severe consequences of climate change.
China installed almost 350 gigawatts (GW) of new renewable capacity in 2023, accounting for more than half of the global total. If China maintains this pace, it is likely to exceed its 2030 target this year, according to a June report by the International Energy Agency (IEA).
While praising China’s expansion of renewable energy, Habeck emphasized the importance of considering overall CO2 emissions, not just the growth of renewables. In 2023, coal still accounted for nearly 60% of China’s electricity supply. “China has a coal-based energy mix,” Zheng noted.
China, India, and Indonesia are responsible for almost 75% of global coal consumption, as these governments prioritize energy security, availability, and cost over carbon emissions.
Zheng explained that China was building coal-fired power plants as a security measure.
Habeck responded, “I still believe that the enormous expansion of coal power can be done differently if one considers the implication of renewables in the system.”
