Germany’s Economy Minister Robert Habeck, during a visit to Beijing, emphasized that proposed European Union tariffs on Chinese goods are not intended as a punishment. This visit marks the first by a senior European official since the EU proposed substantial duties on imports of Chinese-made electric vehicles (EVs), aimed at addressing what the EU views as excessive subsidies.

China warned that increasing tensions over EVs could lead to a trade war. However, Habeck clarified during a climate and transformation dialogue session, “These are not punitive tariffs.” He contrasted the EU’s approach with that of the U.S., Brazil, and Turkey, which have implemented punitive tariffs. “Europe does things differently,” he added.

Habeck explained that the European Commission had conducted a thorough nine-month investigation to determine whether Chinese companies had unfairly benefited from subsidies. Any resulting countervailing duties are meant to offset these advantages, not to punish.

In a meeting with Zheng Shanjie, chairman of China’s National Development and Reform Commission, Habeck reiterated that the EU tariffs aim to create a level playing field. Zheng responded firmly, stating, “We will do everything to protect Chinese companies.”

The EU’s provisional duties are set to take effect by July 4, with the investigation continuing until November 2. If definitive duties are imposed, they could last for five years. Habeck urged Chinese officials to engage in discussions regarding the EU report’s conclusions. “It’s important now to take the opportunity that the report provides seriously and to talk or negotiate,” he said.

The primary goal of Habeck’s visit was to deepen cooperation on climate change and the green transition. Despite trade tensions, both nations aim to prevent global warming from exceeding 1.5 degrees Celsius above pre-industrial levels, a critical threshold according to scientists.

While praising China’s significant expansion of renewable energy, Habeck noted the need to address overall CO2 emissions. In 2023, coal accounted for nearly 60% of China’s electricity supply. Zheng defended China’s reliance on coal for energy security, but Habeck suggested that the expansion of coal power could be managed differently with a greater integration of renewables.