Saxony's Economics Minister Dirk Panter has called for increased tariffs on Chinese electric vehicles, arguing that higher trade barriers are essential to compel Beijing-based automakers to establish joint ventures with Volkswagen.

The push comes as the German automaker faces mounting pressure to secure the future of its Zwickau production site amid ongoing restructuring efforts.

Panter, a member of the Social Democratic Party (SPD), stated that without stronger protective measures, Chinese firms have little incentive to commit capital to local partnerships.

His comments highlight the growing tension between maintaining open trade flows and protecting domestic industrial capacity in the face of aggressive Chinese market expansion.

The call for higher tariffs aligns with broader European Union preparations for potential escalation in trade disputes.

Recent reports indicate that both the United States and China are signaling increased pressure through proposed tariff adjustments, creating a volatile environment for European manufacturers.