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China

Interview | Car industry

Källenius: 'The competition is enormous'

Mercedes boss Ola Källenius explains how he wants to assert himself in the highly competitive Chinese market. And why he believes that the end of the combustion engine by 2035 is hardly feasible.

By Julia Fiedler

The relationship between the EU and China is tense. The coronavirus pandemic and China's behavior in the Ukraine crisis have strained relations with the EU. But change is in sight, as the EU and China want to maintain their economic relations. What impact has the coronavirus had on EU-China relations? The coronavirus pandemic has affected the EU-China relationship. In November 2019, the coronavirus was first detected in Wuhan, after which the pathogen spread from China around the world. With the spread of Omikron in China, the country is pursuing a strict zero-covid strategy. China's handling of the pathogen, the reporting and the tense situation in the global supply chains posed challenges for the EU's China policy. China VS Europe: How does the EU assess China's behavior in the Ukraine crisis? The EU and China are dealing with the Ukraine crisis in very different ways. The Chinese president is backing Russia, which is strongly condemned by the EU. At the same time, China wants to circumvent EU sanctions so as not to jeopardize economic relations with the EU. EU Commission President Ursula von der Leyen has repeatedly called for China to rethink its approach to the Ukraine crisis and its dealings with Russia. What are the economic relations between China and the EU like? The EU and China have had an intensive economic relationship since the '90s. Alongside the USA, the European Union and China are among the three largest economies in the world. The volume of trade between the EU and China is around EUR 1 billion per day, making China the European Union's most important trading partner on the one hand and the EU an important strategic market for China on the other. Since 2013, China has wanted to strengthen the trade routes between China and Europe with the New Silk Road from China to Europe and Africa. In 2020, around EUR 586 billion was traded between China and the EU in the form of goods (imports and exports).The CAI, the investment agreement between China and the EU, was adopted in 2020. This regulates the following areas, among others: How has the political relationship between China and the EU developed? The relationship between the EU and China underwent a transformation after the Cold War. China was supposed to have established diplomatic relations with the then European Economic Community in 1975, but it was not until 1988 that the first representation was opened in Beijing. Due to the Tiananmen event in 1989, the relationship did not develop smoothly. Since the mid-'90s, however, economic relations have developed rapidly and political contacts have become ever closer. In 1994, a political dialog between China and Europe was officially established, so that the first China-EU summit was held in London in 1998 and has been held regularly ever since. Results of the last China-EU summit, the EU's position on China's human rights, possible EU sanctions against China and EU-China agreements. All EU-China news is available from Table.Briefings.