Germany to vote against EU duties on Chinese electric cars

On October 4, Germany will vote against the European Union's introduction of tariffs on Chinese electric cars, people familiar with the matter told CNN.
Germany abstained in the first non-binding vote in July on the European Commission's proposal to impose the duties, but the industry has since pressured German Chancellor Olaf Scholz to vote against the measure when European Union member states vote on Friday.

The Commission's proposal can be implemented if a qualified majority of the EU's 15 members, representing 65% of the EU population, do not vote against it, a very high hurdle.

On Wednesday, it emerged that France, Greece, Italy and Poland would vote in favour, which would be enough to push through the EU's most significant trade measures.

A German government spokesman declined to comment.

The Commission argues that the duties are necessary to counter cheap loans, land and raw materials, as well as other subsidies, and that the aim is a level playing field, not to exclude Chinese carmakers from the market, as is likely to happen with the planned 100% US duty.

German car manufacturers, which last year accounted for a third of sales in China, oppose the duties. They are worried about retaliation and fear a trade conflict with the country's second most important trading partner.

IG Metall, the influential German workers' union, and employee representatives of the country's biggest carmakers said in a statement on Thursday that Germany should vote against the tariffs.

"We say unequivocally: tariffs are the wrong approach because they will not improve the competitiveness of the European car industry," their joint statement said. | BGNES