Germany's Scholz calls for more talks with China on electric vehicles

Weekly German cabinet meeting in Berlin·Reuters

BERLIN (Reuters) -German Chancellor Olaf Scholz said on Wednesday that it would be wrong to shut out foreign competition and narrow the circle of trade partners, saying negotiations with China on electric vehicles must continue.

"More trade with more partners from more countries - that's what sensible risk management looks like in an uncertain world," said Scholz.

"That's why negotiations with China on electric vehicles must continue and why we must finally tackle the areas where cheap Chinese imports are harming our economy, for example steel," he said.

Scholz's comments come before a vote on Friday by EU member states on imposing tariffs on China-made electric vehicles. The Commission says duties are to counter cheap loans, land and raw materials and other subsidies and the goal is a level playing field, not shutting out Chinese carmakers.

German carmakers, which made a third of their sales last year in China, oppose the tariffs.

Scholz said he wanted the EU to conclude more trade deals.

"We have not handed over responsibility for trade policy to Europe so no more agreements can be concluded," he said, adding the EU should change the system so deals can apply immediately to individual states that have ratified them.

(Reporting by Andreas Rinke, writing by Madeline Chambers, editing by Thomas Seythal and Matthias Williams)