German Chancellor Olaf Scholz on Thursday urged the European Union (EU) to swiftly reach a resolution with China regarding the ongoing tariff dispute over electric vehicles (EVs).
\"It makes no sense to have conflicts about this. Therefore, I appeal to everyone to bring these negotiations to a good result now,\" Scholz stated upon his arrival at the European Council summit.
China has expressed hope that the EU will take concrete steps promptly to advance consultations on a price commitment plan for Chinese EVs, according to the Ministry of Commerce. \"China always stands for the resolution of trade frictions through dialogue and consultation, and has been doing its utmost in the price commitment talks,\" said the ministry's spokesperson He Yongqian.
In addition to addressing the tariff issues, Scholz also urged the European Commission to reconsider the enforcement of financial penalties for EU carmakers that fail to meet the region's carbon dioxide (CO2) 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 emphasized.
Scholz further 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 aims for climate neutrality by 2050, which includes a 90 percent reduction in greenhouse gas emissions from transport. To support this ambitious goal, stricter EU emissions rules for automakers will take effect from 2025, requiring an average of 93.6 grams of CO2 per kilometer or less. Automakers exceeding this limit are subject to fines of 95 euros (approximately $98.45) per gram per car.
Industry estimates suggest that European automakers could face penalties totaling up to 15 billion euros for failing to meet the targets, with Germany's Volkswagen, the region's largest automaker, among those most exposed.
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Germany's Scholz urges swift deal with China over EV dispute
cgtn.com
