China's Xi Jinping says Germany has big role in solving EV tariff impasse

Chinese President Xi Jinping and German Chancellor Olaf Scholz have held talks on the sidelines of the G20 summit in Rio de Janeiro. 

It could be the last meeting between the two in their current roles. Scholz is facing a vote of no confidence in his minority government next month, and should he lose, there will be early elections on February 23. 

The latest polling doesn't look favorable for Scholz returning as German leader.

European Union tariffs on Chinese-made electric vehicles (EVs) were among the topics discussed between the pair. The EU decision to implement additional duties on Chinese EVs will see as much as 45.3 percent tacked onto the price of cars made by some manufacturers.

Germany opposes tariffs on Chinese EVs, and the big German car manufacturers have spoken with one voice to decry them.

In 2023, Germany exported just over $29 billion worth of cars and car parts to China. Some major German automakers plan to do as much as 40 percent of their business with China. 

Their big fear is that if Brussels and Beijing do not find a solution, reciprocal tariffs on EU exports to China could spell the end for some of Europe's biggest employers.

The official Chinese statement from the behind-closed-door talks stated that there is still hope that the tariffs, which came into effect at the end of last month, can be replaced with a better solution for all sides.

It read: "The EU's additional tariffs on Chinese electric vehicles have attracted worldwide attention. China has always insisted on resolving differences through dialogue and consultation and hopes that Germany will continue to play an important role in this regard." 

Brussels introduced the tariffs following an investigation claiming that Chinese companies benefited unfairly from government subsidies, allowing them to undercut European EV manufacturers on cost. The Chinese Commerce Ministry has dismissed these claims.

The two leaders also spoke about the situation in the Middle East and the conflict in Ukraine, which has now passed 1,000 days. 

Regarding the Ukraine conflict, Chancellor Scholz said in his opening statement: "No one should have to fear their neighbor - a very central principle of peace in the world, which we are very committed to." 

Scholz last met Xi in April in Beijing.