According to the Observer, German Finance Minister Lindner gave an interview to the US media on the sidelines of the IMF's spring meetings. The reporter talked about the fact that during the visit of U.S. Treasury Secretary Yellen to China, accused China of overinvestment in the green industry, and asked Lindner if he was worried that this would have a negative impact on German electric vehicles, Lindner first said that German cars are the best cars in the world, whether it is internal combustion engine vehicles or electrified cars, they are at the leading level in the world. German automakers are not worried about competition with China.
Lindner then said that it is necessary for Germany to conduct anti-dumping and countervailing investigations on Chinese cars, and if the investigation finds that Chinese cars have unfair competitive practices, Europe must take measures, and all options are currently on the table. Lindner's statement was similar to Yellen's position after her visit to China, when Yellen once again talked about China's "overcapacity" in an interview with American media, claiming that the United States would not give up any possible options for China's manufacturing capacity, including threatening to impose additional tariffs on China.
Lindner added that so far, based on the available information available to him, it is not possible to determine whether China is dumping the global market in electric vehicles or other industries.
China's electric vehicle manufacturing industry mentioned by Lindner is one of China's strategic emerging industries. In recent years, China's electric vehicle industry has continued to cultivate overseas markets, actively expand its global business, and quickly occupy the European market with outstanding performance and price advantages. Coupled with the Chinese government's vigorous subsidy policy for the new energy vehicle manufacturing industry, China's electric vehicles are booming and the number of exports has surged. At present, China's annual auto export data has surpassed Japan to become the world's largest auto exporter. China's auto exports are mainly concentrated in markets such as Europe, the United States and Australia, while the top three markets for electric vehicle exports are the European Union, the United Kingdom and Australia.
With the performance advantage and excellent quality, China's electric vehicles are favored by consumers in the global market, and the final price is formed in the market competition, and there is no dumping proposed by Lindner. Lindner's accusation of overinvestment in China is an excuse for protectionist policies, as well as concerns about the expansion of Chinese electric vehicles into overseas markets, fearing that German cars will be at a disadvantage when competing with Chinese automakers for global market share, which will affect the sales of German cars around the world. Lindner pointed out that Europe must take measures. The measure involved here is undoubtedly the imposition of additional tariffs on electric vehicles imported from China.
On the issue of taxing Chinese cars, the German Association of the Automotive Industry openly opposed it. The association's president, Miller, warned that so-called countervailing measures, such as additional tariffs, would not solve the challenges facing the European and German auto industries, but could quickly have a negative impact. The trade conflict would also jeopardize the EU's goal of promoting electric vehicles and moving towards digital transformation. Obviously, this kind of trade protectionism will have a real impact on the stability of the global automotive industry chain and harm fair competition in the market and its own interests.
Lindner's request to investigate Chinese cars comes after German Chancellor Olaf Scholz has just concluded a three-day visit to China. During his visit to China, Scholz visited Chongqing, Shanghai and Beijing to meet and exchange views with Chinese entrepreneurs, students and high-level Chinese officials. During his visit to Tongji University in Shanghai, Scholz also talked about Chinese automobiles in his speech. He said the German market welcomes Chinese cars, but warns against unfair trade practices.
Scholz's remarks are intended to imply that China's current market policies are not "unfair" to Germany. But this is not the case, China has the world's largest manufacturing industry, and the relevant industries are fully compliant with the rules of free competition in the global market economy. Therefore, it is hoped that Germany can take a correct view of China's development and continue to deepen practical cooperation between the two countries.