EU tariffs on China are not ‘punishment’, says German economy minister By Reuters

Beijing – The European Union’s proposed tariffs on Chinese goods are not “punitive,” German Economy Minister Robert Habeck told Chinese officials in Beijing on Saturday.

Habeck’s visit to China is the first by a top European official since Brussels proposed a heavy burden on sales of Chinese-made electric vehicles (EVs) to combat what the EU considers excessive subsidies.

China warned on Friday ahead of his arrival that growing tensions with the EU over EVs could lead to a trade war.

“It’s important to understand that these are not punitive taxes,” Habeck said at the opening panel of the climate change talks.

Countries such as the US, Brazil and Turkey have implemented tariffs, but not the EU, the economy minister said. “Europe does things differently.”

Habeck said that for nine months, the European Commission has thoroughly examined whether Chinese companies benefited unfairly from subsidies.

Any duty measure resulting from the EU review is “not punitive”, he said, adding that the measures were designed to compensate for the benefits given to Chinese companies by Beijing.

“Generally, equal levels of market access must be achieved,” said Habeck.

Meeting with Zheng Shanjie, chairman of China’s National Development and Reform Commission, Habeck said the EU’s proposed tariffs are aimed at leveling the playing field with China.

Zheng replied: “We will do everything to protect Chinese companies.”

The EU’s interim measures will come into effect on July 4, and the investigation will continue until Nov. 2, where specific duties may be imposed, usually for five years.

Habeck told Chinese officials that the conclusions of the EU report should be discussed.

“It is important now to take the opportunity given by the report seriously and talk or discuss,” said Habeck.

THE SPEECH OF HEAVEN

Although trade tensions were an important topic for discussion, the purpose of the meeting was to deepen cooperation between the two industrialized countries on the green transition.

This was the first session of the conference on climate change and transition after Germany and China signed a cooperation agreement in June last year to cooperate on climate change and green transition.

Countries have agreed that they have a special responsibility to limit global warming to 1.5 degrees Celsius (2.7 Fahrenheit) above pre-industrial temperatures, a level scientists consider critical to preventing the worst consequences.

China has installed nearly 350 gigawatts (GW) of new renewable energy by 2023, more than half of the global total, and if the world’s second-largest economy maintains this pace it will likely exceed its 2030 target this year, a report published in June by The International Energy Agency (IEA) indicated.

Although Habeck praised the increase in renewable energy in China, he noted that it is important not only to look at the increase in renewables, but also the overall CO2 emissions.

Coal will still account for about 60% of China’s electricity by 2023. “China has a coal-based energy mix,” Zheng said.

China, India and Indonesia, are responsible for about 75% of the total coal burned worldwide, as governments tend to prioritize energy security, availability and cost over the amount of carbon emissions.

Zheng said China is building coal-fired power plants as a safety measure.

“I still believe that a large increase in coal power can be done differently if one considers the implications of renewables in the system,” Habeck replied.