Beijing warned on Friday that rising tensions with the European Union over electric vehicle (EV) imports could lead to a trade war.
As per Reuters, this warning came as Germany's Economy Minister, Robert Habeck, arrived in Beijing, with the proposed tariffs high on his agenda.
Habeck’s three-day visit is the first by a senior European official since Brussels proposed heavy duties on Chinese-made EVs to counter excessive subsidies.
This move has led to countermeasures and sharp criticism from Chinese leaders.
Habeck, a member of Germany’s Greens Party, criticized Berlin's China strategy document, calling it too short-term and not aligned with other EU countries.
This week, Chinese automakers urged Beijing to increase tariffs on imported European gasoline-powered cars, and the government launched a dumping investigation into EU pork imports in response to the EU's actions.
"The European side continues to escalate trade frictions and could trigger a 'trade war'," said a Chinese commerce ministry spokesperson.
The ministry accused the EU of intimidating Chinese businesses and threatening high tariffs.
Habeck's visit is seen as an opportunity for Germany to explain the recent tariff announcement and mitigate the risk of Chinese retaliation that could hurt German businesses.
Germany's car manufacturers, which rely heavily on the Chinese market, have opposed the EU tariffs and urged dialogue with China.
The EU's decision on EV tariffs has strained trade relations with China, the world's second-largest economy.
However, Chinese state media viewed Habeck’s visit as a chance to ease tensions, suggesting that Germany should seek consensus.
