Scholz of Germany Calls for Quick Resolution with China in Electric Vehicle Conflict
German Chancellor Olaf Scholz emphasized the need for the European Union to swiftly negotiate a resolution with China regarding the tariff dispute related to electric vehicles during an address on Thursday.
TroibNews 
On Thursday, German Chancellor Olaf Scholz called for the European Union to swiftly finalize an agreement with China regarding the tariff dispute surrounding electric vehicles.
"It makes no sense to have conflicts about this. Therefore, I appeal to everyone to bring these negotiations to a good result now," he stated as he arrived at the European Council summit.
The Chinese Ministry of Commerce expressed that China is hoping for the EU to take tangible steps promptly to advance consultations on a pricing commitment plan for Chinese electric vehicles.
According to ministry spokesperson He Yongqian, China advocates for resolving trade conflicts through dialogue and consultation, emphasizing its commitment to the price commitment discussions.
In addition, Scholz requested that the European Commission mitigate the enforcement of financial penalties for EU automakers who do not meet the upcoming carbon dioxide emission targets set for next year.
"In the current global pressures facing the automotive industry, especially in Europe, it makes no sense to further burden companies with penalties for unmet targets in 2025," he remarked.
He added, "The Commission should find a way so that, if penalties become necessary, they do not impact the financial liquidity of the companies that now need to invest in electro-mobility, modern products and vehicles."
The European Green Deal's objective is to achieve climate neutrality by 2050, which includes a 90 percent reduction in greenhouse gas emissions from transportation. Stricter EU emissions regulations for automobile manufacturers will come into force in 2025, requiring average emissions of 93.6 grams of CO2 per kilometer or less. Companies that exceed this threshold will incur fines of 95 euros per gram per vehicle.
Industry projections indicate that European automakers could face penalties amounting to 15 billion euros for not meeting these targets, with Germany's Volkswagen, the largest manufacturer in the region, being one of the most vulnerable.
Ian Smith contributed to this report for TROIB News
"It makes no sense to have conflicts about this. Therefore, I appeal to everyone to bring these negotiations to a good result now," he stated as he arrived at the European Council summit.
The Chinese Ministry of Commerce expressed that China is hoping for the EU to take tangible steps promptly to advance consultations on a pricing commitment plan for Chinese electric vehicles.
According to ministry spokesperson He Yongqian, China advocates for resolving trade conflicts through dialogue and consultation, emphasizing its commitment to the price commitment discussions.
In addition, Scholz requested that the European Commission mitigate the enforcement of financial penalties for EU automakers who do not meet the upcoming carbon dioxide emission targets set for next year.
"In the current global pressures facing the automotive industry, especially in Europe, it makes no sense to further burden companies with penalties for unmet targets in 2025," he remarked.
He added, "The Commission should find a way so that, if penalties become necessary, they do not impact the financial liquidity of the companies that now need to invest in electro-mobility, modern products and vehicles."
The European Green Deal's objective is to achieve climate neutrality by 2050, which includes a 90 percent reduction in greenhouse gas emissions from transportation. Stricter EU emissions regulations for automobile manufacturers will come into force in 2025, requiring average emissions of 93.6 grams of CO2 per kilometer or less. Companies that exceed this threshold will incur fines of 95 euros per gram per vehicle.
Industry projections indicate that European automakers could face penalties amounting to 15 billion euros for not meeting these targets, with Germany's Volkswagen, the largest manufacturer in the region, being one of the most vulnerable.
Ian Smith contributed to this report for TROIB News
