With a word of power in the dispute over tariffs on Chinese electric cars, Chancellor Olaf Scholz (SPD) caused irritation in Europe and caused new anger in his coalition. Against the wishes of the Greens, Scholz ordered a German vote against the EU Commission’s customs decision. This is the second time in his term of office that he has made use of his directive authority. After Konrad Adenauer, Scholz is only the second chancellor to explicitly use this means of power. In German constitutional practice, it has generally been sufficient for the head of government to theoretically have the last word. Scholz’s decision is therefore seen as a further indication of the disruption in the traffic light coalition and more of a sign of weakness.
At the European level, Scholz also exposes himself by saying no, as Germany was unable to assert his position. The EU Commission accuses China of unfair subsidies. In a vote by the 27 EU states, it received the necessary support to impose the planned punitive tariffs of up to 35.3 percent on electric cars from China. Ten countries voted for the tariffs; only Hungary, Slovenia, Slovakia and Malta joined Germany’s no vote. Twelve member states abstained.
:EU states clear the way for tariffs on Chinese electric cars
The EU Commission accuses Beijing of distorting the market. After a decisive vote, it now has a free hand in introducing tariffs.
In order to prevent the tariffs, a majority of EU states, which together make up at least 65 percent of the EU’s total population, would have had to speak out against the plan. French President Emmanuel Macron in particular supported the EU Commission’s plan. The no vote pushed through by Scholz is primarily seen as a signal to EU Commission President Ursula von der Leyen. Scholz sees the Commission’s decision as putting a one-sided burden on the German auto industry, which is heavily involved in China.
Scholz considers cheap imports to be more harmful in other areas
The Chancellor’s word of power was preceded by a controversial discussion in the cabinet on Wednesday. Foreign Minister was there According to SZ information, Annalena Baerbock (Greens) advocated a tough stance towards Beijing, while Chancellor Scholz and Finance Minister Christian Lindner (FDP) spoke out against the punitive tariffs and criticized the procedure chosen by the EU Commission. Vice Chancellor and Economics Minister Robert Habeck (Greens) called for abstention – a position that Baerbock is said to have ultimately agreed with. “Our reaction as the EU must not lead to us damaging ourselves,” said Scholz after the cabinet meeting at an event organized by the foreign trade association BGA. That’s why it’s better to “take action where cheap Chinese imports are actually damaging our economy, for example with steel.”
Habeck in particular must now feel snubbed by the directive that came from the Chancellery on Thursday afternoon. As Minister of Economic Affairs, he is formally responsible for trade issues. The position of the EU Commission is “credible,” Habeck reiterated last week after a meeting with the automotive industry. At the same time, he emphasized that he was “not a fan of tariffs”. There is a fear of a tariff spiral and ultimately a trade war. A political solution would be better. In June, Habeck was in Beijing himself, among other things; It wasn’t until mid-September that he met China’s Trade Minister Wang Wentao in Berlin.
He would have decided differently, says Habeck
Habeck reacted to the Chancellor’s decision with corresponding pique. In the meantime, the Chinese were negotiating “seriously for the first time”. This only happened “because China notices that the EU is determined and also closed”. Put another way: the German no, enforced by a power word from the Chancellery, weakens the Europeans’ negotiating position. “That’s why I would have decided differently,” says Habeck now. “China understands clear language and announcements very well. It knows how to use weakness,” he emphasized.
The customs issue is now re-emerging a fundamental disagreement about the right way to deal with the power-conscious China, which has accompanied the traffic light coalition since the beginning. Led by Foreign Minister Baerbock, the Greens are also calling for a self-confident line towards Beijing as a lesson from the mistakes made in dealing with Russia. Last year, Baerbock caused a stir when she called China’s state and party leader Xi Jinping a “dictator” in an interview with the US broadcaster Fox News.
On Friday, according to SZ information, the dispute also became the topic of a leadership committee made up of the party and parliamentary group leadership as well as the Green ministers Habeck and Baerbock. The different points of view were discussed, it was said afterwards. “We can’t let China divide us in Europe,” co-group leader Britta Haßelmann also publicly expressed outrage. Once again, Germany is opposing the EU Commission with the Chancellor’s “no” to punitive tariffs on “unfairly subsidized electric cars from China”. Scholz’s decision was “industrially and geopolitically wrong,” criticized the outgoing Green Party leader Ricarda Lang via the short message service X.
Most recently, the Federal Office for the Protection of the Constitution warned urgently for the first time that, in the eyes of the domestic secret service, China was more of a threat than an opportunity for the German economy. China is aggressively pursuing its goal of becoming the world’s most important economic, scientific and military power by 2049 using legitimate but also illegal means, warned Sinan Selen, deputy head of the Office for the Protection of the Constitution. The government’s mistrust of China and fears of sabotage and espionage were so great that it decided in July that central components from the Chinese telecommunications supplier Huawei should disappear from important parts of the German mobile network by 2029 at the latest.