German Chancellor Olaf Scholz’s refusal to support EU tariffs on Chinese electric vehicles did not prevent other EU members from voting in favor, highlighting Germany’s internal division and struggle to influence EU policy. The rejection came after pressure from German carmakers, who heavily rely on Chinese sales.
Contrasting with a decade ago when Germany was able to negotiate deals and hold influence in the EU, the current coalition government is facing challenges. The economy is expected to contract for a second year, and domestic politics are taking precedence over EU unity.
Brussels is frustrated with the infighting in Germany’s coalition government, which weakens the EU’s position and unity. Despite this, the EU is committed to finding a compromise with Beijing over electric vehicles, although Germany’s rejection has complicated negotiations.
German industries take a nuanced approach, acknowledging the risks associated with trade with China’s state-controlled economy. The internal split within Germany’s government reflects the complexities of navigating relationships with China.