Germany's automotive industry is advocating for free trade and expressing optimism about renewed trade discussions between the EU and China, as highlighted by VDA president Hildegard Müller.

During a recent meeting with China's Minister of Commerce, Müller expressed hope for a resolution to the ongoing EU-China tariff dispute affecting electric vehicles.

This dispute follows a year-long anti-subsidy investigation that led the European Commission to impose tariffs on China-made electric vehicles in October 2024.

However, recent discussions have shifted towards exploring minimum pricing instead of tariffs, indicating a potential easing of trade tensions.

Müller believes that while minimum pricing is preferable to tariffs, it still does not fully represent open trade, underscoring the need for continued dialogue between the regions.

She emphasized the importance of sustained dialogue to enhance mutual economic benefits and cooperation in the automotive sector.

German auto manufacturers view China as a unique market, leveraging its technical infrastructure and skilled workforce, and adopting a 'learn from China' approach, particularly in the electric vehicle sector.

Müller sees significant potential for cooperation between Germany and China, suggesting that combining China's rapid development with Germany's manufacturing efficiency could yield substantial benefits.

Researcher Shi Shiwei noted that Müller's understanding of China's EV sector reflects the close economic ties between the two countries, indicating potential for deeper collaboration.

Germany's automotive industry welcomes investments from Chinese car manufacturers, emphasizing cooperation and expansion opportunities.

At the Auto Shanghai 2025 exhibition, German brands like Volkswagen, BMW, and Mercedes-Benz showcased their latest electric vehicles, highlighting their commitment to the dynamic Chinese market.

Moreover, German carmakers have increased investments in China, focusing on local production and joint ventures to better cater to this evolving market.