German Auto Lobby Flags China Trade Imbalance, Backs Rules-Based Response

Germany's automotive industry association has voiced concern over mounting trade imbalances with China, while signalling support for a rules-based European response should global trade norms be breached.

The president of the VDA, Hildegard Mueller, said the European Union possesses the instruments needed to protect fair competition when violations of World Trade Organization rules result in market distortions. Such tools, she indicated, become relevant once competition has been skewed beyond a certain threshold.

Mueller stressed that differences ought to be settled through dialogue in the first instance. Any measures that are ultimately taken, she added, must be weighed in close consultation with the industries that would be affected.

She also cautioned against resorting to isolationist or protectionist policies, noting that such steps carry the risk of escalating trade disputes.

Her remarks follow a report that she had explicitly backed the imposition of new tariffs on China under certain conditions.