Scholz: ‘Protectionism not necessary, make cars more attractive’

There are increasing voices within the EU to protect local car manufacturers against Chinese competition. For example, the European Commission will investigate Chinese car manufacturers to see whether there is ‘unfair competition’. According to an EU chief, manufacturers from outside China that do produce cars there should also be scrutinized. There may eventually be additional import duties for cars from China. The CEO of Mercedes-Benz is not a fan of this and now German Chancellor Olaf Scholz is also calling for an open market.

The 65-year-old social democrat explains Business twoche about the possible higher import duties: “I’m not really convinced of that, to put it mildly. Our economic model should not be based on protectionism or rely on it, but on the attractiveness of our products.” In short, Scholz believes that it is up to European car makers to arm themselves against Chinese competition by improving their own products. Scholz refers to the rise of Japanese brands in the 1980s and that of South Korea in the 1990s, which also did not destroy the European car industry.