Editorial | China-Germany collaboration better than punitive tariffs
- German envoy to China says disputes over ‘overcapacity’ in new-energy products need not come at expense of cooperation with West to find global solutions
According to a senior European envoy, there is no contradiction between China’s row with the West over its alleged overcapacity in new-energy products such as electric vehicles (EVs), and cooperation between the two on clean energy, and automated and connected driving.
In an exclusive interview, German ambassador to Beijing Patricia Flor told the Post this was because of the mutual need to look for global rules and standards in a new era of technology.
That is reassuring after the United States yesterday ratcheted up its trade war with China by slapping a massive tariff increase on lower-priced Chinese EVs and other new-energy products to combat “overcapacity”.
Lest talk of overcapacity is interpreted as fear of competition with China, Flor says Germany – global champion of high-end, quality products – welcomes it.
Indeed, she says one of the reasons German businesses want to remain engaged in China is that it is a super-competitive market where many new ideas and products originate.
But while Germany welcomes competition it wants a fair and level playing field. In that regard, China says it is no different from most countries, including the US, in supporting EVs and other new-energy products one way or another to encourage investment in quality, affordable output that stimulates consumer demand.
