Blume suggested that Chinese companies investing in Europe and creating jobs should receive incentives, such as exemptions from the EU tariffs, which can be as high as 45% on Chinese electric vehicles.

The outcome of the EU tariff vote represents another blow to the German automotive industry, which is already facing profit warnings and heightened concerns about balance sheets amid slowing demand and intense competition. Volkswagen has revised its performance expectations downward for the second time this year and is considering closing plants in Germany for cost-cutting measures.

Volkswagen, BMW Group, and Mercedes-Benz have all opposed the EU's high tariffs on electric vehicles imported from China, as approximately one-third of their sales come from the Chinese market.