China, EU must reason their way out of EV dispute: ex-Merkel adviser
Former adviser to German chancellor says dialogue, not punitive tariffs, should be basis for conflict resolution in EU-China dispute
Shortly before new European Union tariffs on Chinese-made electric vehicles (EVs) are expected to enter into force, a former economic adviser to Angela Merkel urged both sides to reach a solution through settlement and avoid “punitive” measures.
Roller – director general for economic and financial policy at the German chancellor’s office from 2011 to 2022 – tends toward diplomacy in his own stance on the disagreement. “I think the answer to the overcapacity problem … is not trade war, but multilateral solutions where we cooperate and solve the problem,” he said in an interview on September 24.
“It’s always going to be the approach – let’s talk, let’s solve the problems, and let’s not escalate, because in the end we will all lose,” said Roller, also the founder and chair of Berlin Global Dialogue. “We have to make sure to not fall into the independence trap. We have to build common ground, where possible, so that everybody can benefit.”
Roller recalled from his time in government that overcapacity concerns related to China had been present for “a number of years”, with the G20 trying to work out a multilateral approach on steel. China had also made “some offers” in the past, he said.
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“In the end it didn’t work, and we started imposing tariffs on each other for steel and aluminium, which I think is the second-best solution,” he said.
Trade tensions between China and the EU have risen since last year, when the bloc launched an investigation into the subsidies granted to certain manufacturers. A call-and-response pattern was soon established, with pressure from Beijing ramping up as the EU began to act.