Germany is keen to avoid a trade war developing between the European Union and China over, what would appear to be, the impending imposition of import tariffs on Chinese solar panel manufacturers. This view has been expressed at the highest level by the German Chancellor Dr Angela Merkel.
Chinese Premier Li Keqiang
(image credit: World Economic Forum)
This viewpoint was put across during the visit of China’s Premier Li Keqiang to Germany in the last few days. The German Chancellor has committed to work towards resolving the matter over the following six months. She feels that intensive discussions should take place between Europe and China about the issues.
This opinion was supported by Philipp Roesler who is Germany’s Economy Minster who made a speech in the presence of Premier Li Keqiang in which he apparently indicated that Germany were voting against import tariffs averaging 47% being imposed on China by the European Commission. He felt that there was no requirement to impose penalties and that Germany was in favour of competition that was fair and for markets that were open.
The Chinese Premier welcomed Germany’s viewpoint and the fact that they were trying to obtain a greater amount of time to resolve the matter. He was critical of the approach of the EU pointing out that the proposals damage others and commented: “Therefore we hope that through joint efforts and through dialogue and consultations, the trade disputes between China and the EU can be settled.”
It is interesting to note that Germany is China’s largest trading partner in Europe. Germany exported goods worth 66.6 billion euros in 2012 to them comprising mainly electrical goods, machinery, car parts and cars. Therefore, they are hardly going to want to become embroiled in a trade war with China.
With the impending decision of the European Commission due next week about an import tariff there will no doubt be further developments that we will keep you appraised about.
