“FATAL SIGNAL”
The EU duties have pitted France and Germany against each other, with Paris arguing they are necessary to level the playing field for EU carmakers against Chinese counterparts.
Germany, renowned for its strong auto industry and its key manufacturers including BMW, Volkswagen and Mercedes heavily invested in China, urged the commission not to go ahead.
The vote’s results demonstrate how the EU’s biggest trade investigation in years has ruffled feathers, with the bloc’s biggest economy vehemently against the duties.
“The EU Commission should not trigger a trade war despite the vote in favour” of the tariffs, German Finance Minister Christian Lindner said. “We need a negotiated solution.”
Berlin has strong arguments on its side: Beijing has threatened to hit back hard and has already opened probes into European brandy, dairy and pork products imported into China.
“We will face all types of retaliation from China, that’s for sure,” one diplomat said.
China tried in vain to stop the duties coming into force through dialogue, but talks have so far failed to produce an agreement that satisfies the EU.
Any duties could be lifted later if China addresses the EU’s concerns.
