EU to establish tariffs on Chines EVs, G7 commits to Rules-Based-Order, Chinese Doping and much more...

Welcome to "Germany in Asia"! A weekly digest highlighting the major news in German-Asian relations.

Top Story of the Week

EU Plans Tariffs on Chinese Electric Cars Amid Trade Dispute

The European Union (EU) has announced plans to impose provisional tariffs on electric cars imported from China starting in July. These tariffs, ranging up to 38.1%, are intended as a response to what the EU sees as unfair trade practices and subsidies distorting competition in the electric vehicle sector. The EU's investigation found that Chinese manufacturers benefitted from extensive subsidies throughout their production chain, giving them a competitive edge in the European market.

The tariffs vary based on the level of cooperation during the investigation: companies that did not provide sufficient information face the highest tariff of 38.1%, while those that cooperated better are subject to lower rates. For instance, the leading Chinese electric vehicle manufacturer BYD faces a tariff of 17.4%, whereas SAIC, which cooperated minimally, faces the highest rate.

European automakers, including Tesla and BMW, which also produce electric cars in China, will face a 21% tariff. This decision has sparked concerns about potential retaliatory measures from China, which has threatened to respond with tariffs on EU products such as agricultural  goods, aircraft parts, and luxury cars.

The EU's move comes amid broader international trade tensions, with the US and Turkey also recently imposing tariffs on Chinese electric vehicles. The EU aims to negotiate with China to resolve issues related to overcapacity in the electric vehicle market, but is prepared to implement tariffs if negotiations do not yield satisfactory outcomes.

The decision has garnered mixed reactions within the EU: while some European Parliament members support the tariffs as necessary to protect against unfair competition, others, including German officials, criticize them as harmful to European interests. The impact of these tariffs on the electric vehicle market remains uncertain, with  experts speculating on potential decreases in imports and price adjustments over time.

Competition from China - Car Sales: Total, Europe and Germany

Source: Handelsblatt

Government

G7 communique on Indo-Pacific and Scholz hinting at China?

The document reaffirms a commitment to a free and open Indo-Pacific based on rule of law, sovereignty, peaceful dispute resolution, fundamental freedoms, and human rights, highlighting the importance of peace and stability for global prosperity and security. It supports ASEAN centrality and the ASEAN Outlook on the Indo-Pacific, as well as the 2050 Strategy for the Blue Pacific Continent.

It seeks constructive and stable relations with China through direct engagement to manage differences. Cooperation with China is deemed necessary for addressing global challenges, including climate change, pollution, and health security. The document calls for free and fair trade, addressing concerns over China’s non-market practices and export controls, while emphasizing the need for resilient and diversified supply chains.

China is urged to act responsibly in cyberspace and address malicious cyber activities. The document stresses the importance of peace across the Taiwan Strait and supports Taiwan’s participation in international organizations without altering the one-China policy.

It opposes China’s actions in the East and South China Seas, reaffirming the legal framework of UNCLOS and the binding nature of the 2016 Arbitral Tribunal award. The document calls on China to end its support for Russia’s aggression in Ukraine and cease support for Russia’s defense sector.

Concerns are raised over human rights violations in Tibet, Xinjiang, and Hong Kong. The document condemns North Korea’s weapons programs and military cooperation with Russia, urging compliance with UN Security Council resolutions and dialogue for regional peace.

Regarding Myanmar, the document condemns the military regime’s repression and humanitarian crisis, calls for respect for human rights, and supports inclusive dialogue for democracy. It urges states to prevent arms flow to the Myanmar military and backs ASEAN and UN efforts to resolve the crisis.

In his final press conference, Scholz emphasized the critical importance of trade:

"One important issue that has been on our minds is, of course, trade relations for the future. In this respect, I believe that progress has been made. At previous meetings, we have also been very successful in ensuring that supply chains and production relationships can be diversified and that the countries in which raw materials are located can develop the first processing stage themselves, also with our support. This means that not everything is monopolized by a few."

"At the same time, we have now also agreed to make progress in strengthening the World Trade Organization. In my view, it is very important that conflicts can be resolved there again (...)."

Source: White House, Bundesregierung

Vice Chancellor Habeck set for East Asia Trip

From the 17.06 - 21.06  Vice Chancellor Robert Habeck will embark on hiss East Asia trip, which begins in South Korea and conclude in China. Habeck will be accompanied by a small economic delegation of 13 representatives.

This comes at a critical time as the European Commission has announced plans to impose tariffs of 17.4% to 38.1% on Chinese electric car imports if no agreement is reached with the Chinese government. This measure is a response to China flooding the European market with subsidized low-cost cars, which the EU views as a violation of fair competition.

Source: Spiegel

Ministry of the Interior Witness Ulrich Weinbrenner Explains Hesitancy in Amending Local Staff Procedure for Afghanistan

Ulrich Weinbrenner, a witness from the Federal Ministry of the Interior (BMI), explained to the 1st Investigation Committee on Afghanistan why the ministry hesitated to amend the Local Staff Procedure (OKV). The BMI resisted moving from individual risk assessments to blanket acceptance of local staff due to migration and security concerns.

The committee is investigating events from the Doha Agreement between the USA and the Taliban in February 2020 to the chaotic evacuation from Kabul Airport in August 2021. Weinbrenner highlighted that Afghan nationals entering Germany had nearly doubled recently, with limited deportations despite many being required to leave.

The OKV, established in 2013, allowed residence permits for particularly endangered Afghans under Section 22 of the Residence Act. Until 2021, the Foreign Office (AA) rejected 50% of applications, indicating thorough reviews. From 2020, the AA proposed "Visa on arrival" without prior security checks due to capacity issues at the Kabul embassy. The BMI opposed this, citing security risks, as previous checks had revealed individuals with criminal records.

Ultimately, establishing an International Organization for Migration (IOM) office in Kabul was seen as a solution for processing applications post-troop withdrawal. Weinbrenner acknowledged that other ministries viewed the BMI as obstructive but maintained that they supported changes aligned with their security concerns. The ministry continued individual assessments until summer 2021, even rejecting expansions of the eligible group for OKV. In June 2021, an adjusted procedure for Bundeswehr local staff was agreed upon as troop withdrawal loomed, making on-site risk assessments impossible.

Weinbrenner concluded that while the OKV wasn't tailored for Afghanistan, it was effective.

Source Bundestag

Parlament

WADA Criticized by Sports Committee Over Handling of Positive Doping Tests in Chinese Swimmers

The World Anti-Doping Agency (WADA) faced widespread criticism during a session of the Sports Committee for its handling of positive tests from 23 Chinese swimmers for the banned heart medication Trimetazidine in early 2021. Investigations by ARD's doping editorial team and the New York Times revealed that no sanctions were imposed. WADA had accepted the Chinese Anti-Doping Agency's (ChiNada) explanation that the positives were due to food contamination in a hotel kitchen without conducting its own investigation.

Journalist Hajo Seppelt and Lars Mortsiefer, Chairman of Germany's National Anti-Doping Agency (NADA), criticized WADA's acceptance of ChiNada's narrative, calling it implausible and inadequate. Athletes’ representatives, including fencer Léa Krüger and water polo player Kevin Götz, expressed a loss of trust in WADA's integrity and the global anti-doping system. Mahmut Özdemir, Parliamentary State Secretary at the German Federal Ministry of the Interior, declared that WADA risked losing its legitimacy, emphasizing the lack of accountability and transparency.

Seppelt questioned the feasibility of the contamination story, noting the absence of any responsible party or explanation for how the substance could have contaminated the food. WADA's failure to address the issue at the committee meeting exacerbated concerns.

Mortsiefer highlighted the ongoing ambiguity and inconsistency in WADA's rule interpretation, which undermines athlete confidence in anti-doping efforts. Krüger and Götz echoed these sentiments, stressing the importance of consistent and rigorous application of anti-doping regulations to maintain clean sport and athlete trust.

Here you can read the New York Times article

Source: Bundestag

Announcement on agricultural trade with China

Germany is preparing to meet China's phytosanitary requirements to export apples, following the example of Poland and France. According to a government response to a query from the CDU/CSU faction, once these negotiations are completed, the economic sector can plan initial shipments, expected to begin in 2025. Ongoing technical negotiations are addressing the details for exporting beef. These efforts follow statements by Agriculture Minister Cem Özdemir regarding his April visit to China, where agreements were signed to lift trade restrictions related to BSE and facilitate apple exports from Germany.

Source: Bundestag

BSW demands "Stop NATO expansion in Europe and Asia”

The title of the motion (20/11655) from the BSW group is "For a Policy of Detente - Stop NATO Expansion." In the motion, the members assert that the NATO summit in Washington in July 2024 increasingly favors "escalation in Europe and expansion in Asia towards a global NATO." They argue that NATO faces an existential strain due to its unconditional support for the U.S.'s global world order ambitions. The other alliance members risk subordinating their foreign and security policies to Washington's dictates and compromising their own democratic sovereignty, according to the members.

The motion calls on the German government to advocate for an independent European foreign and security policy, emphasizing good relations with all major powers, adherence to international law, detente policies, and balancing of interests. Additionally, it urges the government to push for a halt to NATO expansion in Europe and Asia, oppose the deployment of NATO weapons in Russia, and support diplomatic solutions and immediate unconditional ceasefires in Ukraine and Gaza.

Source: Bundestag

Recommendations

„How Europe's tilt to the right will affect Asian democracies” - Nikkei Asia

„Modi Tried, and Failed, to Homogenize Hindus” - Foreign Policy

„Germany’s Defense Engagement in the Indo-Pacific Is a Balancing Act” - The Diplomat

„China’s Do-Nothing Strategy in the Middle East” - Foreign Affairs

Events

17.06 - What to Expect from the Washington Summit: A Conversation with NATO Secretary General Jens Stoltenberg - Wilson Center - Register Here

18.06 -Cultural Encounters: Food Histories of South Asia - Asia Society - Register Here

21.06 - AUKUS: Taking Stock and Looking Forward - CNAS - Register Here

25.06 - India’s Strategy in Myanmar - Stimson Center - Register Here

Thank you for reading! I’ll see you next week.