Expert: Protectionism 'wrong way to go'

BERLIN — Building up new tariffs and sliding into protectionism is the wrong way to go, said a German business leader on Tuesday, adding that there should be more dialogue instead.

Hildegard Mueller, president of the German Association of the Automotive Industry, or VDA, said she is very pleased the association was able to have open and key dialogues with China's commerce minister and business leaders, and these have helped open up interest and opportunities to intensify cooperation between the two countries.

"We need to talk to each other so that it is equally possible for companies of both sides to approach mutually, produce there and sell there", instead of new tariffs and barriers, which are not the right way forward, Mueller said.

The German car industry is on an ambitious path toward climate neutrality and has a clear road map. The VDA has committed to achieving this goal by 2050.

As the largest market for the ramp-up of electric mobility, China is indispensable for the climate neutrality of Germany's automotive industry, as this rapid growth in China has benefited Germany technologically, Mueller said.

"In China, around 16 percent of the cars produced are exported. The German auto industry has higher export figures. We export three out of four cars produced," she said, adding that German carmakers are happy to join the highly competitive Chinese market where three out of every 10 cars worldwide are sold.

Constant investment

Chinese new energy vehicles stand out in the global market and have seen export increases because of constant investment in research and development, comprehensive supply chains and rich human resources.

The recent so-called narrative of overcapacity on Chinese new energy vehicles is "questionable" as "the Chinese numbers do not speak for it", Mueller said, adding that fair competition globally should be welcomed and is good for all.

Last week, a BMW i5 electric car rolled off the assembly line in Shenyang, Liaoning province, marking the 6 millionth car produced by BMW's joint venture in China since the German carmaker entered the Chinese market 30 years ago.

Volkswagen has also announced the establishment of its largest R&D center outside the German headquarters in Hefei, Anhui province, to focus on intelligent connected vehicles.

Mueller regards the automotive cooperation between China and Germany in green transformation and intelligent connectivity as vitally important, and encourages the two parties to continue to be crucial partners in achieving global climate goals.

"I believe that the two markets should be closely linked," she said, expressing her welcome for Chinese companies coming to Germany. And German carmakers have shown interest in not only exporting but also producing in China, she said.

Xinhua