Politics
An electric vehicle trade war with China would be a personal goal of automakers
The unpleasant thing about war is that your enemies have a habit of fighting back. It's a lesson German Chancellor Olaf Scholz would do well to keep in mind when he visits China this week, amid a brewing trade battle over clean technology.
The visit comes days after a trip by U.S. Treasury Secretary Janet Yellen, who warned that “electric vehicles, lithium-ion batteries and artificially cheap solar panels made in China were causing” negative fallout in the United States and around the world. Far from calling for a ceasefire in former President Donald Trump's trade wars, the Biden administration now appears to be rearming in an attempt to neutralize the issue before the November election.
This puts Germany in an uncomfortable position. Thanks to Russia's invasion of Ukraine, Berlin is already being forced to rethink its postwar commitment to pacifism. The increasingly entrenched trade tensions between the United States and China are forcing a similar reckoning with their multilateral approach to international trade.
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