German Chancellor Scholz: There will be no trade war between the EU and China

　　Governing Council member, Central Bank of Spain (ESP) Governor Pablo Hernandez de Cos, said that keeping interest rates at current levels could bring inflation back to the central bank's target.

　　German Chancellor Olaf Scholz said the European Union's (EU) investigation into China's (CHN) electric car subsidies will not escalate into a Trade War, but instead both sides should provide a level playing field for all participants.

　　In his first comments since the electric car subsidy investigation was announced two weeks ago, Scholz said at another event: "Obviously this (trade war) is not going to happen." We want to sell our cars in Europe, North America, Japan (JPN), China, Africa, South America and everywhere. This means that we are also open to bringing cars from other countries to the German market. Now there are German cars in Korea (KOR) and Korean cars in Germany - what's wrong with that?"

　　To be sure, if a trade war breaks out between China and the EU, Germany will be hit the hardest. China could restrict German cars from entering its huge market, where the likes of Volkswagen and BMW sold 4.6 million vehicles last year.

　　China initially reacted positively to European Commission (EC) President Ursula von der Leyen's statement on September 13, calling it a "naked act of protectionism." That sparked fears of a potential trade war, but those fears eased after the European Union's Valdis Dombrovskis subsequently visited China.

　　Earlier today, European Council President Charles Michel also made comments to ease tensions. He said Europe was focused on "rebalancing" to avoid over-dependence on one country. "We don't want any trade wars. We want to rebalance our relationship with China to address key vulnerabilities. It's never good when you're so dependent on one country."

　　He added that Europe learned a lesson after The outbreak of the Russia-Ukraine War last year, as over-dependence on fossil fuels from Russia (RUS) triggered an energy crisis in the region.

　　"Within the EU, there is a shared view and vision that we need to rebalance our economic relationship and address our vulnerabilities. We are engaging a lot with China and I am confident that we can protect European interests."