Yicai) April 29 -- Germany welcomes investment from Chinese automobile manufacturers and encourages its own carmakers to expand their presence in China, the president of Germany’s leading auto industry body, the German Automotive Industry Association, said during a recent meeting with China’s Minister of Commerce.

The German Automotive Industry Association, also known as the VDA, hopes the trade dispute between the European Union and China regarding the imposition of tariffs on China-made electric cars will be resolved soon, Hildegard Müller said at a meeting with Wang Wentao on April 27 at which the two parties discussed automotive collaboration between the two countries.

The VDA firmly opposes trade protectionism, she said. The automotive industry must adhere to globalization and tackle challenges through openness and cooperation. Reckless tariff hikes will only harm global economic stability.

The Chinese and German automotive industries have a strong foundation of cooperation, Wang said in a statement released by the Ministry of Commerce. German carmakers have been witnesses, participants and beneficiaries of China’s reform and opening-up. China’s door will only open wider and the nation’s policies on utilizing foreign investment remain unchanged. Wang said he hoped that German firms would stay confident in the Chinese market and seize the opportunities it presents.

The VDA and many of its member companies took part in the recent Shanghai Auto Show where they were impressed by China’s rapid progress in electrification and digitalization, further reinforcing their view that China is a priority market, Müller said.

Müller has a clear understanding of the development path of China’s EV sector, Shi Shiwei, a visiting professor at the Free University of Berlin and a researcher at the China-EU Economic Cooperation Research Center, told Yicai. Her remarks reflect the close economic ties between China and Germany, he added.

China and Germany have strong potential for deeper collaboration in manufacturing due to their complementary strengths, Shi said. In areas where they compete, both sides should leverage the mechanisms of government dialogues, technical alliances and industry associations to improve the business environment, expand market access, respect intellectual property and reject protectionism, he added.

German auto manufacturers see China as a unique market as no other market in the world offers such robust technical infrastructure, a vast pool of engineers and competitive salary levels, he said. In recent years, many major German carmakers have adopted a ‘learn from China’ approach and have sped up the release of new models. Particularly in the EV sector, German firms aim to emulate China’s approach of encouraging competition while ensuring long-term planning.

After a year-long anti-subsidy probe, the European Commission imposed tariffs of between 17 percent and 36.3 percent on China-made EVs last October. However, more recently, the EU and China have agreed to look into setting minimum prices for Chinese EVs instead of tariffs, a EU Commission spokesperson said recently.

Editor: Kim Taylor