China's commerce minister meets German auto group leader

China's Commerce Minister Wang Wentao met with Hildegard Muller, president of the German Automotive Industry Association (VDA) on Sunday, urging the association to play positive role in steering Germany and the EU to firmly safeguard multilateral trade and calling for proper resolution of the EU's anti-subsidy case against Chinese electric vehicles (EVs). 

Wang stated that China and Germany have a solid foundation for cooperation in the automotive industry, with German automakers having served as "witnesses, participants, and beneficiaries" of China's reform and opening-up. "China's door will only open wider, and our policies on utilizing foreign investment have not and will not change," he emphasized, expressing hope that German automakers would "seize opportunities and strengthen confidence in investing in China."

Wang said that unilateralism and protectionism by certain country are severely disrupting international economic order and global supply chains, with the automotive sector bearing the brunt. "China and the EU stand as twin pillars in defending multilateralism and free trade," Wang stated, urging the VDA to "continue playing an active role in steering Germany and the EU to resolutely uphold the multilateral trading system and stabilize global industrial and supply chains."

He also called on the EU side to work with China to resolve the EU's anti-subsidy case against China's EVs as soon as possible on the basis of respecting international economic and trade rules.

For his part, Muller said that recently the VDA and several member companies participated in the 21st Shanghai International Auto Industry Exhibition, where they were "deeply impressed by the electrification and digitalization progress of China's automotive industry," further solidifying their stance to regard China as "the most critical market," according to a statement from the Chinese Commerce Ministry. 

"The automotive industry must adhere to globalization and tackle challenges through openness and cooperation. Reckless tariff hikes harm global economic stability. The VDA resolutely opposes trade protectionism," Muller said, expressing hope that EU-China consultations on the EV subsidy case would "achieve positive progress soon" to properly resolve the trade dispute.

Muller also said that the VDA encourages German automakers to "expand investments in China," welcomes Chinese automakers to invest in Germany, so as to "jointly advance industry upgrading and technological innovation," according to the statement.