German carmakers should not fear Chinese competition, says Olaf Scholz .

Scholz Advocates for Fair Competition in EV Market

German Chancellor Olaf Scholz emphasized the need for fair competition in the electric vehicle (EV) market, responding to concerns about China’s dominance in electric motor technology. At the opening ceremony in Kupenheim, he stated, “Some say China can do much better with electric motors than we can,” but reassured that German companies should not fear this competition.

Opposition to EU Tariffs

Scholz reiterated Germany’s opposition to EU tariffs on Chinese-made EVs, arguing that such measures harm European interests. “I am against tariffs that harm us,” he remarked, suggesting that the EU should focus on addressing dumping and subsidies in industries like steel instead.

Concerns Over Retaliation

The EU’s heavy tariffs on Chinese EVs, aimed at countering alleged unfair state subsidies, have raised concerns among German car manufacturers, who generate a significant share of their profits in China. Scholz’s stance reflects a desire for dialogue over confrontation, as tensions mount between Europe and Beijing.

Innovative Recycling Initiatives

In related news, Mercedes is set to launch a carbon-emissions-free factory aimed at extracting key raw materials from old electric car batteries, showcasing the industry’s commitment to sustainability.