Chinese auto firms must be allowed to avoid tariffs by investing in EU, notes VW CEO: Report

The CEO of German carmaker Volkswagen noted that the EU must allow adjusting tariffs against EVs made in China to allow for investments made in Europe, Reuters reported. 

"Instead of punitive tariffs this should be about mutually giving credit for investments. Those who invest, create jobs and work with local companies should benefit when it comes to tariffs," VW CEO Oliver Blume told Sunday paper Bild am Sonntag, in an interview.

The EU will go ahead with tariffs on EVs made in China, an EU executive noted on Friday, even as Germany, EU's largest economy voted against it, in what is seen as a divergence in the largest trade row with Beijing, in a decade, the newswire noted. 

The duties of up to 45% on Chinese made EVs are slated to come into effect from next month, for a period of five years, the newswire noted. The Commission said it would continue discussions with Beijing. 

VW's Blume told Bild am Sonntag that there was a risk that retaliatory tariffs by China would hurt European carmakers, the newswire noted.