German auto lobby warns of China trade imbalances, backs WTO-based response

The ‌head of ​Germany's auto industry association VDA on Thursday warned ‌of growing trade imbalances with China, saying the EU has tools to safeguard fair competition ‌if WTO rule violations lead ‌to market distortions.

While differences should be resolved through dialogue, these tools can be deployed once ⁠competition ​has ⁠been distorted beyond a certain point, VDA President ⁠Hildegard Mueller said in a statement. Any measures must ​be assessed in close consultation with ⁠the affected industry.

"Isolationism and protectionist measures always carry ⁠the risk ​of escalating trade disputes," Mueller said. Handelsblatt had reported Mueller's explicit ⁠endorsement of imposing new tariffs on China under ⁠certain ⁠conditions earlier on Thursday.