Germany’s Economy Minister Robert Habeck clarified that proposed European Union tariffs on Chinese goods are not intended as a punishment during a visit to Beijing on Saturday. This visit marks the first by a senior European official since the EU suggested imposing substantial duties on Chinese-made electric vehicles (EVs) in response to what it perceives as excessive subsidies.
EU Tariffs: A Measure for Fair Competition
Habeck emphasized in a climate and transformation dialogue session that the proposed tariffs are not punitive. “It is important to understand that these are not punitive tariffs,” he said, distinguishing the EU’s approach from that of other countries like the U.S., Brazil, and Turkey. “Europe does things differently.”
Habeck explained that the European Commission had conducted a thorough nine-month investigation to determine whether Chinese companies had unfairly benefited from subsidies. The proposed countervailing duties are intended to level the playing field, compensating for the advantages granted to Chinese firms by their government. “Common, equal standards for market access should be achieved,” he asserted.
Dialogue with Chinese Officials
In discussions with Zheng Shanjie, chairman of China’s National Development and Reform Commission, Habeck reiterated that the EU’s proposed tariffs aim to ensure fair competition. Zheng responded firmly, stating, “We will do everything to protect Chinese companies.”
The EU’s provisional duties are set to take effect by July 4, with the investigation continuing until November 2. Final duties, potentially lasting five years, could be imposed based on the investigation’s findings. Habeck encouraged Chinese officials to engage in dialogue regarding the EU report’s conclusions, stating, “It’s important now to take the opportunity that the report provides seriously and to talk or negotiate.”
Focus on Climate Cooperation
While trade tensions were a key topic, the primary goal of Habeck’s visit was to enhance cooperation on climate change and the green transition. This meeting was the first plenary session of the climate and transformation dialogue since Germany and China signed a memorandum of understanding in June of the previous year.
Both nations acknowledged their significant responsibility to prevent global warming from exceeding 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial levels, a threshold deemed critical by scientists.
Renewable Energy and Emissions Concerns
Habeck commended China’s significant expansion of renewable energy, noting that China installed nearly 350 gigawatts of new renewable capacity in 2023, over half of the global total. The International Energy Agency (IEA) indicated that China might surpass its 2030 renewable energy targets this year. However, Habeck stressed the importance of considering overall CO2 emissions alongside the expansion of renewables.
“China has a coal-based energy mix,” Zheng acknowledged, noting that coal still accounted for nearly 60% of China’s electricity supply in 2023. China, along with India and Indonesia, is responsible for nearly 75% of global coal consumption, as these countries prioritize energy security and affordability over carbon emissions.
Zheng explained that China is building coal-fired power plants as a security measure. Habeck, however, suggested, “I still believe that the enormous expansion of coal power can be done differently if one considers the implication of renewables in the system.”
Habeck’s visit underscores the delicate balance between fostering international cooperation on climate goals and addressing trade disputes to ensure fair market practices.
