TMTPost -- German Chancellor OIaf Scholz called for the European Union to be open to Chinese vehicles while zero tolerance for dumping in the auto market during the leader’s three-day visit to China.

Credit：CCTV

China-made vehicles are welcomed in the German market, Scholz said during his travel in Shanghai on Monday, a day following his arrival in Chongqing as his first stop in China. Scholz emphasized that the European market must engage in open and fair competition with Chinese automakers. “At some point there will also be Chinese cars in Germany and Europe. The only thing that must always be clear is that competition must be fair,” Scholz told students at Tongji University in Shanghai. Scholz reminded people of the worry that Japanese and Korean cars would have conquered the European market when cars made by these two Asian countries started entering Europe, adding that such scary "did not come true."

In the meantime, the German Chancellor warned that Europe would not tolerate dumping, overcapacity or intellectual property infringement in the auto industry.  “In other words, that there is no dumping, that there is no overproduction, that copyrights are not infringed,” Scholz said, stressing it was important to allow companies to set up production facilities locally without bureaucratic hurdles. “And that’s why whenever I’m in China and I say level playing field, of course we want our companies to have no restrictions,” he said.

In addition to three cabinet members including Agriculture Minister Cem Özdemir, Transport Minister Volker Wissing and Environment Minister Steffi Lemke, the German chancellor was accompanied by a group of top corporate leaders such as the chief executives of the auto giants manufacturers Mercedes-Benz Group AG and BMW AG as well as the tech conglomerate Siemens AG. Such all-start economic delegation joined the Chancellor highlighted German companies maintained their positive attitude toward investing in China, reported the state media China Central Television (CCTV). About 91 % of surveyed German companies said they will continue their operation in China, without plan to exit, and 54 % plan to increase investments in the country, the report quoted the business confidence survey for 2023 and 2024 by the German Chamber of Commerce in China. The report also noted the foreign direct investment (FDI) from Germany rose 4.3% from a year earlier to 11.9 euros in 2023, setting a new annual record even the country experienced economic recession and total FDI slumped nearly 32% to 116 euros.

This is Scholz’s second trip to China since taking office in December 2021 and his first visit since his cabinet approved a long-awaited comprehensive China strategy last July.According to the 64-document of strategy, Germany, as Europe’s largest economy, decided to change its approach as the resulting of a changing China. In the strategy, Germany vowed to ensure economic cooperation with China “becomes fairer, more sustainable and more reciprocal.” While Associated Press called the strategy “a balancing act”, Reuters noted it came as some Western policymakers advocated reducing dependence on China. Such attempt, which has been labeled by them as de-risking, was denounced by Chinese officials recently. Scholz clarified in July that Germany‘s first China strategy aims to take response to China’s increasing assertiveness, rather than to cut ties with the country.

Scholz expressed his hope to strengthen scientific exchanges with China in his talks with students at Tongji University on Monday. He said contacts has dropped significantly during the Covid-19 pandemic, but such negative trend is reversing now.  "I hope dialogue will increase again and mutual visits will increase," he said. Scholz departed Shanghai to Beijing late Monday and Chinese President Xi Jinping and Chinese Premier Li Qiang are scheduled to meet him , respectively, reported China Global Television Network (CGTN). Heads of China will exchange views about bilateral relation and issues both concerned with Scholz, according to the state-run media. Scholz will warn President Xi that he needs to act soon to avoid European Union tariffs which are set to rebalance the trade relationship, including on electric vehicles, Bloomberg cited people familiar with the preparations.

The European Commission is launching a new inquiry into Chinese suppliers of wind turbines as it is concerned certain manufacturers may benefit from unfair subsidies, Margrethe Vestager, the executive vice-president of the EU executive, announced last week. The head of the Trade Remedies Bureau of the Ministry of Commerce of China (MOFCOM) has lodged stern representations against EU’s investigation and its report about severe distortions in China's economy. Chinese Foreign Ministry spokesperson Mao Ning said China urges the EU to observe WTO rules and market principles and vows to firmly protect the lawful rights and interests of Chinese companies.