Germany's Scholz Cautious on EU Probe Into Chinese EVs

German Chancellor Olaf Scholz poured cold water on the European Union’s anti-subsidy investigation into Chinese electric vehicles, warning against taking protectionist actions that could harm domestic industries.

“We want to sell our cars but that means we are also open to receive cars from other countries,” Scholz said Thursday in a discussion with Bloomberg’s Stephanie Flanders at the Berlin Global Dialogue forum. “Now there are German cars in Korea, and Korean cars in Germany — what is the problem?”

Germany stands to be the country most affected in the EU in the event of a tit-for-tat tariff dispute with China. If levies are imposed, Beijing’s most powerful response would be to restrict access to its vast market — something that would hit German automakers hardest as they sold 4.6 million cars there last year.

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