**German Scholz proposes: both EU and China impose 15% tariffs on cars**
On the 28th, the German "Handelsblatt" reported that in response to the EU-China automobile tariff dispute, German Chancellor Scholz put forward an unusual proposal.
He suggested that China and the European Union impose the same tariff on imported cars on each other: 15 percent.
Germany's Focus weekly reported that Scholz, who has long criticized the EU's plan for EV tariffs on China, wants the EU to significantly reduce tariffs. His main starting point was to protect the sales business of the German automotive industry in China.
Scholz told the German Bundestag on Wednesday that "I am not satisfied with the outcome of the EU's trade policy" and that "something has to change dramatically." According to Handelsblatt, Scholz asked the EU to impose a uniform 15% tariff on all Chinese car exports, which is only slightly higher than the 10% tariff already imposed by the EU on Chinese cars.
For several months, the German automotive industry has been active in the hope of preventing a trade war between the EU and China that could be ignited by the EU's Chinese car tariffs. However, some politicians in the EU who are not friendly to China believe that Scholz's proposal is "naïve and short-sighted."
Not long ago, the European Commission recently announced an increase in tariffs on Chinese electric vehicles, with an additional increase of up to 38.1%, which, together with the 10% tariff already imposed, could total the tariff to 48.1%. SAIC Motor was judged to be required to pay this maximum amount of tariffs, while BYD was about half. The tariffs could take effect in early July, depending on the progress of the EU's negotiations with China.
Scholz's initiative is already known within the EU, but many politicians in the European Commission "list it as an inappropriate proposal," Handelsblatt further reported. According to EU authorities, Scholz's idea "is not an option." These unfriendly people quibble that the key to dealing with China is not to "adjust tariffs between China and Europe," but to force China to "compete fairly." This argument is actually tantamount to endorsing the US policy toward China.
In addition to the deep influence of the United States on the EU's top brass, the total collapse of the French car industry in China has become a major factor in the EU's attempts to crack down on the Chinese auto industry, which has little qualms about China's possible crackdown on European brand car companies, because the business of French cars in China is already extremely limited.
The performance of French car brands in the Chinese market is less prominent than that of other international brands, especially German brands. The reason for this unsuccess can be attributed to a combination of factors. The impression of its brand positioning in the minds of consumers is not clear enough. German brands are known for their engineering precision and technological innovation, while French brands have relatively low publicity and awareness in this area, resulting in a lack of consumer impression of French cars. In terms of product strategy, the design and product characteristics of French cars may not fully take into account the needs and preferences of Chinese consumers. Chinese consumers tend to choose models with grand exteriors, luxurious interiors and technologically advanced designs, and some French models may fail to meet these specific needs. Operational problems with the joint venture have also affected the competitiveness of French brands in the Chinese market. Partnership issues and management disagreements that may arise in joint ventures affect the effective execution of brand strategy and marketing.
It is not difficult to see that these politicians in the EU clearly and completely ignore the interests of European industry, especially the German automotive industry and its employees. Therefore, the German government has made it clear that it opposes the EU's imposition of punitive tariffs on Chinese electric vehicles, because this will not only affect German manufacturers that produce and sell in China, but also further worsen the German economy and hit the German general public.
Handelsblatt quoted an EU representative who is not friendly to China as saying: "Scholz is only concerned about this topic now. "Some in the European Commission professed fears that the German government's boycott will weaken its negotiating position.