VDA President Hildegard Müller regarding the Agreement between the EU and China

VDA President Hildegard Müller: 

"The bilateral economic relations between Germany, Europe and China are a long-standing success story that has created prosperity, value added and employment in the respective countries. For the German automotive industry, China is not only an important sales and procurement market, but also a significant hub for innovation. At the same time, economic conditions have changed considerably in recent years. Imbalances have emerged in trade with China over the past few years.

The understanding reached today during the talks between the European Union and China is a first positive signal and reflects the willingness of both sides to address existing challenges through dialogue. The VDA expressly welcomes all progress that helps to reduce trade tensions and create reliable framework conditions for companies. However, a final assessment of the agreements will only be possible once the specific details, framework conditions and implications for the automotive industry are known in detail. The decisive factor will be whether the results achieved contribute to fair competitive conditions, provide planning certainty and strengthen open and rules-based trade.

In its relations with China, the VDA continues to pursue a three-pronged approach. The political priority must be to strengthen the international competitiveness of Germany as a business location. This secures growth, employment and political influence vis-à-vis partners alike. Differences must be resolved through close exchanges within the various dialogue formats. Should market distortions nevertheless arise as a result of conduct that violates WTO rules, the European Union has WTO-compliant instruments at its disposal aimed at ensuring a level playing field. The German automotive industry remains firmly committed to fair and rules-based trade. Trade defence instruments can be deployed once distortions of competition reach a certain level, but their potential consequences must be carefully assessed in close consultation with the industry concerned. Isolationist and protectionist measures always carry the risk of exacerbating trade conflicts and placing a considerable burden on a globally integrated industry such as the automotive industry."