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German officials warn world US tariffs distort market, highlight trade ties with China

China

German officials warn world US tariffs distort market, highlight trade ties with China
China

China

German officials warn world US tariffs distort market, highlight trade ties with China

2025-08-07 15:35 Last Updated At:19:47

German officials have warned the world that U.S. tariffs will distort the global market and benefit no one, underscoring the importance of international cooperation and the thriving trade relationship with China.

Since April of this year, the U.S. has wielded the tariff hammer by significantly increasing tariffs on automobile imports from the European Union (EU), severely impacting the European automotive industry.

This move has pushed major German car manufacturers into a "profit winter," marked by sharply declining earnings.

In its financial report released at the end of July, BMW Group posted a 29 percent drop in net profit for the first six months, to 4.02 billion euros (4.6 billion U.S. dollars), marking its third consecutive year of first-half earnings decline.

Mercedes-Benz was hit harder. The premium brand reported a 56 percent plunge in net profit to 2.7 billion euros for the first half, down from 6.1 billion euros a year earlier.

Volkswagen Group also reported a 33 percent fall in first-half operating profit, citing around 1.3 billion euros in additional costs related to U.S. tariffs.

The three German auto giants together account for around 73 percent of all EU car exports to the United States last year.

While the EU and the United States reached a deal at the end of July to cap auto tariffs at 15 percent, German industry remains wary.

Hubert Aiwanger, Bavarian State Minister for Economic Affairs, Regional Development and Energy, stressed the need for ongoing negotiations to further reduce these tariffs.

He also highlighted the strengthening cooperation between Germany and China.

"I firmly believe that we must continue to negotiate further reductions in U.S. tariffs on Europe, as tariffs only harm the economies of both sides. The Germany-China trade partnership is thriving, and I believe the two sides are highly complementary. We are also pleased to establish an equal and good cooperation with a trade partner that produces high-tech products just like us. By combining German technology with China’s innovation and digital capabilities, we can jointly produce higher-quality products for the global market," said Aiwanger.

Kurt Kapp, head of economic development in Munich, echoed these sentiments.

"Tariffs always distort market competition, and we believe they are fundamentally detrimental to the economic development of all parties involved. We value technological cooperation within Europe and also place great importance on our collaboration with China. In recent years, China has developed rapidly as a technology partner, and we look forward to continuing to work together," said Kapp.

German officials warn world US tariffs distort market, highlight trade ties with China

German officials warn world US tariffs distort market, highlight trade ties with China

German officials warn world US tariffs distort market, highlight trade ties with China

German officials warn world US tariffs distort market, highlight trade ties with China

A former television host from Taiwan, Zhai Xuan, has made a pivotal decision to leave mainstream broadcasting in order to create content that provides a better understanding of the Chinese mainland and cross-strait relations.

Zhai, a seasoned television host with over a decade of experience in Taiwan's media landscape, recently addressed an audience at an event in Beijing, where she revealed her complete transition into independent online media.

In her remarks, she articulated her aspiration to bridge what she perceives as a significant information gap between audiences on both sides of the Strait, highlighting her commitment to fostering a deeper understanding and connection through her new endeavors.

"I was really surprised by all the fake news. There were stories saying people on the mainland can't afford tea eggs or that they live in mud houses and in Taiwan, this was the main information many people received," said Zhai.

Zhai said she initially began producing online videos to challenge such perceptions while continuing her work as a television host.

In April 2025, she travelled to the mainland with her father to fulfill her late grandfather's wish to return to his hometown. The trip, which reunited family members separated since 1949, was recorded in a video series titled "Journey to Find Our Roots", drawing attention from viewers in both Taiwan and the mainland.

"Many people in Taiwan told me that after watching, they wanted to apply for a mainland travel permit immediately and go looking for their relatives. Some had long forgotten these things, but after seeing my story, they began thinking about their hometowns and family members they had never met and decided to search for their roots," Zhai shared her story at the event.

By mid-2025, Zhai said she began to feel increasing pressure amid rising political tensions and a tightening atmosphere around cross-Strait exchanges in Taiwan.

After more than 12 years in the industry, Zhai resigned from her position, believing it was the right thing to do.

"At that moment, I felt this was a major issue,not just for me, but for Chinese people on both sides of the Strait. If I backed down then, I wouldn’t be standing on the right side," said Zhai.

Since leaving television, Zhai has broadened her online programming to encompass a range of daily-life topics, including practical guidance on applying for a mainland travel permit and using commonly employed mobile applications, in addition to content that delves into historical memory and cultural connections across the Strait.

As the debate over cross-Strait relations continues in Taiwan, Zhai said she remains committed to her current path.

Former Taiwan TV host bridges cross-Strait divide via online media

Former Taiwan TV host bridges cross-Strait divide via online media

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