German state minister says higher tariffs could boost Chinese interest in VW plant

BERLIN, July 16 (Reuters) - The European Union should consider raising tariffs on cars made in China to increase pressure on Chinese automakers to partner with European manufacturers such as Volkswagen, a minister in the German state of Saxony, home to a VW plant, said in an interview published on Thursday.

"We need to consider imposing higher tariffs on Chinese-made cars at the EU level," Dirk Panter, economy minister in the eastern state of Saxony, told the Bild newspaper.

His comments follow threats by Volkswagen to close four German factories in the coming years, including the all-electric Zwickau plant in Saxony, if no other solution is found.

Volkswagen CEO Oliver Blume has said one option could be producing the group's Chinese-developed models in Europe. He has also floated the possibility of partnerships with Chinese carmakers.

"If a joint venture in Saxony could help avoid European tariffs, that would be a bargaining chip that would allow us to negotiate from a completely different position," Panter told Bild.

Chinese manufacturers like BYD have been building their market share in Europe, including with popular plug-in hybrid models not covered by the EU's current tariffs on all-electric vehicles.

"We will not keep Chinese manufacturers out of Europe," Panter said. "Anyone who wants access to our market must also take responsibility for value creation and employment in Europe."

(Reporting by Rachel More, Editing by William Maclean)