A cabinet minister from the eastern German state of Saxony is urging the European Union to consider steeper tariffs on Chinese-built automobiles, saying the added financial pressure could encourage Chinese carmakers to establish partnerships with European manufacturers — including Volkswagen, which operates a plant in the region.
Dirk Panter, who serves as Saxony’s economy minister, made the remarks in an interview published Thursday by the Bild newspaper. “We need to consider imposing higher tariffs on Chinese-made cars at the EU level,” Panter said.
The comments come in the wake of warnings from Volkswagen that it may be forced to shut down four of its German manufacturing facilities in the coming years — among them the all-electric vehicle plant in Zwickau, located within Saxony — unless alternative solutions can be identified.
Volkswagen’s chief executive has floated two possible paths forward: manufacturing models developed in China at European production sites, or forming partnerships with Chinese automakers.
Panter suggested that the threat of EU tariffs could serve as a powerful negotiating tool. “If a joint venture in Saxony could help avoid European tariffs, that would be a bargaining chip that would allow us to negotiate from a completely different position,” he told Bild.
Chinese automakers have been steadily expanding their foothold in European markets. Companies like BYD have gained ground in part through popular plug-in hybrid vehicles, which currently fall outside the scope of EU tariffs that apply specifically to all-electric cars.
Panter made clear he is not advocating for shutting Chinese manufacturers out of Europe entirely. “We will not keep Chinese manufacturers out of Europe,” he said. “Anyone who wants access to our market must also take responsibility for value creation and employment in Europe.”
