Investing.com -- A German state minister called for the European Union to consider higher tariffs on cars manufactured in China as a way to encourage Chinese automakers to form partnerships with European companies like Volkswagen.

Dirk Panter, economy minister in the eastern state of Saxony, told the Bild newspaper on Thursday that the EU needs to consider imposing higher tariffs on Chinese-made cars. Saxony is home to a Volkswagen plant.

The comments come after Volkswagen threatened 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 mentioned 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 (SZSE:002594) 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."