Olaf Scholz dismisses fears of EV trade war with China

German chancellor made a strong case for globalised markets as the EU probes state subsidies of China's EV manufacturers

German chancellor Olaf Scholz poured cold water on the European Commission's EV probe in his first comments on the investigation since it was announced two weeks ago. File picture: Michael Sohn/AP

German chancellor Olaf Scholz played down fears of a potential trade war triggered by the EU’s anti-subsidy investigation into Chinese electric vehicles, while making a strong case for globalised markets with a level playing field for all participants.

In his first comments on the EV probe since it was announced two weeks ago, Mr Scholz appeared to pour cold water on the European Commission’s move, and warned against protectionist measures that could harm domestic industries.