German official opposes tariffs, calls for stronger economic ties with China

New Straits Times

05-05-2025

BERLIN: Escalating trade tensions and punitive tariffs imposed by the United States could harm the global economy and pose serious risks to Germany's manufacturing sector, Hubert Aiwanger, deputy minister president of the German state of Bavaria, warned in a recent interview.
Speaking during a visit to Chinese electric vehicle maker NIO's battery swap station in Zusmarshausen, near Munich, Aiwanger stressed the importance of a rules-based international trade system and expressed strong support for continued economic cooperation with China, reported Xinhua.
From Bavaria's perspective, he said, punitive tariffs – whether imposed by the European Union (EU) on China or by the United States on China or the EU – are self-defeating. "Trade barriers only lead to retaliation and economic harm," he noted. "What our businesses and citizens need is open, fair, and stable international cooperation."
His comments come amid rising concern in Germany over the Trump administration's plans to introduce sweeping new tariffs, which will deal a blow to global automakers like BMW, headquartered in Bavaria, that depend heavily on global supply chains and international production networks.
Germany's export-driven manufacturers, many of which source components from one country, assemble in another, and sell to a third, are particularly exposed to rising trade barriers. Tariffs imposed at multiple stages, from imports of Chinese goods to exports to the United States, create a hostile environment for globally integrated companies.
Aiwanger urged major economies to resolve trade disputes through dialogue and cooperation. "The best path forward is to work toward a global market with minimal tariffs and fair competition rules," he said.
Against this backdrop, Aiwanger welcomed the growing presence of Chinese companies in Europe, citing NIO's expansion as an example of mutually beneficial cooperation. The automaker recently opened its 60th battery swap station in Europe.
"We welcome innovative Chinese companies like NIO investing and operating in Bavaria," he said, adding that such partnerships support Bavaria's efforts to transition toward electric mobility and green energy. He emphasised that the battery-swap model could alleviate concerns among German consumers about EV range and charging convenience.
Economic ties between Bavaria and China remain robust. As one of Germany's most industrialised states and home to Siemens, Allianz, and Audi, Bavaria hosts about 500 Chinese companies. Bilateral trade volume nearly doubled in a decade – from 27 billion euros (US$30.51 billion) in 2013 to 53 billion euros in 2023, according to statistics from the Bavarian government.
Regarding the annual dialogue sessions held by the Bavarian government with Chinese firms operating locally, Aiwanger said, "We value their input. They are highly motivated, eager to learn, and focused on results. These conversations help us improve administrative services and streamline approval processes."
In October 2024, Aiwanger led a four-day delegation to China, where he met with business leaders and officials to discuss topics such as autonomous driving and sustainable transportation. Recalling that visit, he said he was particularly impressed by the speed and efficiency with which Chinese companies develop and scale new products and infrastructure. "German companies that cooperate with Chinese suppliers value this agility."
Looking ahead, Aiwanger emphasised the potential for further collaboration with China in artificial intelligence and green industrial transformation. "AI is a key topic in nearly every international exchange, and China is making rapid advances," he said, expressing confidence in the mutual benefits brought by joint research and innovation.
"Chinese firms are well-positioned to expand globally," he said. "As long as they bring high-quality products, they are welcome in Bavaria. Our economic ties should transcend geopolitics and focus on mutual benefit."