Germany Stays Bergeming, Make Sure Abstain In China's Electric Car Tariff Voting In The European Union

Chinese manufacturer Nio inaugurated the Power Swap Station in Norway, July 11. (Doc. Nio Global)

JAKARTA - Since the beginning Germany has always been vocal against the new tariffs that will be imposed by the European Union Commission on imported electric cars from China.

Most recently, Germany will abstain or not vote on the Chinese-made electric car tariff voting which will be held by the European Union on Monday.

Launching Reuters, Saturday, July 13, this is the first step to find out support for the important trade case filed by Brussels.

Sources from Reuters reported on the decision on Friday. The tentative rate proposed by the European Union could reach 37.6 percent for imported electric cars from China. This decision does not require support from member countries, but the final rate could be blocked if the majority of eligible members of the European Union are against it.

Abstain at this early stage effectively meant supporting the European Commission (EU Commission) in their negotiations with China regarding the European Union's biggest trade case.

Germany, as the country with the largest economy in the European Union, abstained because anti-subsidized investigations were still ongoing and negotiations between the European Commission and the Chinese government were still ongoing. The source declined to be named because it was confidential.

"Germany abstain as a form of critical solidarity with the European Commission," said one source.

German automakers, whose sales a third of last year came from China, oppose this tariff. They fear retaliatory action and trade war with their second-largest trading partner country.

Other member states such as France became the strongest supporter of the case, while Hungary actually criticized it. Several other member states are still hesitant about how to vote, which is the first official test of support for the European Commission's tariff steps.

The European Union started this investigation without any complaints from the industry, which is the first trade case of the like.

German Chancellor Olaf Scholz responded to this abstention plan by saying that Germany hopes the European Commission manages to reach an agreement with China regarding electric cars. He believes the deal will be good for the European auto industry.

Scholz declined to confirm how Germany would vote.

"This is a global competitive vehicle that doesn't need to be afraid of competition," he told reporters after a meeting with Japanese Prime Ministers.

"However, we must always ensure that conditions are fair to all parties." he concluded.