China is one of Germany’s top trading partners, accounting for a significant portion of their sales in recent years. — Reuters picBEIJING, June 17 — Falling prices and weak demand are the main difficulties facing German companies in China, according to a report Monday by a business body that said European tariffs on Chinese electric vehicles are counterproductive.
Weak demand linked to the slowdown in the world’s second-largest economy and geopolitical tensions also ranked among the top concerns, the report showed.China is the world’s largest car market and the most advanced in terms of electric vehicle production.But China’s economic slowdown, which is weighing on consumer spending, has led to a price war between manufacturers, impacting profits.
The European Union and China are locked in a row over planned new tariffs of up to 38 per cent on imports of Chinese EVs.