The ongoing trade tensions between China and the European Union (EU) have escalated further as China canceled a planned meeting with German Economy Minister Robert Habeck. The cancellation came without explanation and is seen as a snub by Chinese Premier Li Qiang. The move comes amidst growing Chinese anger over the EU's plans to increase tariffs on Chinese electric vehicles (EVs). The EU's proposed tariffs are intended to address what it sees as excessive subsidies given to Chinese companies. However, Germany's Economy Minister Habeck clarified that the proposed EU tariffs are not punitive measures but rather intended to level the playing field. He emphasized that the EU does not use punitive tariffs like the US, Brazil, and Turkey, but rather employs countervailing duty measures to compensate for advantages granted to Chinese companies by Beijing. The cancellation of the meeting between Habeck and Premier Li Qiang underscores the increasing tension between China and the EU over trade issues.
In a separate development, German diplomat Thomas Bagger stated that Germany's shift in China policy is a response to Beijing's changed behavior. Bagger mentioned that the emphasis has shifted from partnership and cooperation to competition due to China's approach towards Europe. Germany seeks to reduce its dependency vulnerabilities in areas like technology, critical minerals, and medical equipment. Bagger also mentioned that Europe does not view China as a geopolitical challenge to its primacy. The European Union recently imposed new tariffs on Chinese electric vehicles, and China retaliated by launching an inquiry into European pork products. Bagger warned that China's support for Russia in its war on Ukraine would have consequences for its relationship with Berlin. Western nations believe that Russia is meeting most of its semiconductor needs through dual-use imports from China. Bagger visited Washington ahead of the Nato summit and mentioned that European capitals are monitoring the US elections and engaging in a reflection process behind closed doors. [22252035] [f054fd33] [5fa02686] [65db6232]