Habeck’s visit to China is the first by a senior European official since Brussels proposed hefty duties on imports of Chinese-made electric vehicles (EVs) to combat what the EU considers excessive subsidies.

On Friday, China warned ahead of his arrival that escalating frictions with the EU over EVs could trigger a trade war.

“It is important to understand that these are not punitive tariffs,” Habeck said in the first plenary session of a climate and transformation dialogue.

Countries such as the U.S., Brazil, and Turkey had used punitive tariffs, but not the EU, the economy minister said. “Europe does things differently.”

Habeck said that for nine months, the European Commission had examined in great detail whether Chinese companies had benefited unfairly from subsidies.

Any countervailing duty measure that results from the EU review “is not a punishment,” he said, adding that such measures were meant to compensate for the advantages granted to Chinese companies by Beijing.

“Common, equal standards for market access should be achieved,” Habeck said.

Meeting Zheng Shanjie, chairman of China’s National Development and Reform Commission, Habeck said the proposed EU tariffs were intended to level the playing field with China.

Zheng responded by saying “We will do everything to protect Chinese companies.”

Proposed EU import duties on Chinese-made EVs would hurt both sides, Zheng added. He told Habeck he hoped Germany would demonstrate leadership within the EU and “do the correct thing.”

He also denied the accusations of unfair subsidies, saying the development of China’s new energy industry was the result of comprehensive advantages in technology, market, and industry chains, fostered by fierce competition.

The industry growth “is the result of competition, rather than subsidies, let alone unfair competition,” Zheng said during the meeting.

Habeck told Chinese officials the conclusions of the EU report should be discussed.

“It’s important now to take the opportunity that the report provides seriously and to talk or negotiate,” Habeck said.

After his meeting with Zheng, Habeck spoke with Chinese Commerce Minister Wang Wentao, who said he would discuss the tariffs with EU Commissioner Valdis Dombrovskis via videoconference on Saturday evening.