BEIJING (AP) — German Chancellor Olaf Scholz called for fair competition in trade relations with China while warning about dumping and overproduction as he spoke to students in Shanghai on Monday.

Scholz is visiting China against the background of looming EU tariffs on Chinese-made electric vehicles and other trade-related tensions. The two countries are also split over how to handle Russia’s invasion of Ukraine.

“The one thing that must always be clear is that competition must be fair,” Scholz told students at Tongji University in Shanghai, according to German news agency dpa.

“Of course we would like our companies to have no restrictions, but conversely we behave exactly how we are demanding here,” he said, adding there must be no dumping or overproduction.

The European Union is mulling tariffs to protect its producers against cheaper Chinese electrical vehicle imports, which some fear will flood the European market.