German Chancellor Olaf Scholz has urged the European Union to swiftly reach an agreement with China over the ongoing tariff dispute on electric vehicles (EVs), emphasizing the need to avoid unnecessary conflicts that could impact both economies.
“It makes no sense to have conflicts about this. Therefore, I appeal to everyone to bring these negotiations to a good result now,” Scholz stated upon his arrival at the European Council summit on Thursday.
China’s Ministry of Commerce has expressed hope that the EU will take concrete steps as soon as possible to jointly advance consultations on a price commitment plan for Chinese EVs. Ministry spokesperson He Yongqian highlighted China’s commitment to resolving trade frictions through dialogue and consultation and noted that China has been actively engaged in the price commitment talks.
In addition to addressing the tariff dispute, Chancellor Scholz called on the European Commission to ease the enforcement of financial penalties for EU carmakers that fail to meet the region’s carbon dioxide (CO2) emission targets set for the coming years.
“In the current global pressures facing the automotive industry, especially in Europe, it makes no sense to further burden companies with penalties for unmet targets in 2025,” Scholz remarked. “The Commission should find a way so that, if penalties become necessary, they do not impact the financial liquidity of the companies that now need to invest in electro-mobility, modern products, and vehicles.”
The European Green Deal aims for climate neutrality by 2050, including a 90% reduction in greenhouse gas emissions from transport. To support this goal, stricter EU emissions rules for automakers will take effect from 2025, requiring average emissions of 93.6 grams of CO2 per kilometer or less. Automakers exceeding this limit face fines of €95 per gram per vehicle.
Industry estimates suggest that European automakers could face penalties totaling €15 billion for failing to meet the targets, with Germany’s Volkswagen, the region’s largest automaker, among the most exposed.
Scholz’s appeals highlight the significant challenges facing the European automotive industry amid global economic pressures and the push towards electrification and sustainability. His comments come at a time when cooperation between the EU and China is crucial for the industry’s transition to electric mobility and for meeting ambitious climate goals.
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Germany's Scholz urges swift deal with China over EV dispute
cgtn.com
