In September, EU Commission President Ursula von der Leyen announced a competition investigation into market distortions caused by Chinese subsidies for electric cars. If the investigation shows that Beijing is breaking international trade law rules, Brussels could impose punitive tariffs on Chinese vehicles.
But countervailing duties could “quickly have a negative impact in the event of a trade conflict,” said German Auto Association President Hildegard Müller. The current business with China secures “a large number of jobs in Germany”. The Volkswagen Group alone announced an investment in China worth 2.5 billion euros last week.
According to Müller, a trade conflict would also endanger the transformation towards electromobility and digitalization. This is also financed from money that German car companies would generate in China.
