Mercedes-Benz is "pro-free trade and a level playing field", said Ola Kaellenius, the German car group's chairman of the board of management.

Kaellenius made the remarks in an interview with China Daily on Thursday at the Beijing auto show, which he said was his third trip to China in five weeks.

"Let competition play out," said Kaellenius, when asked about the EU's investigation into the China's EV industry and its threat of rising tariffs.

"My suggestion to policymakers was, if anything, lower it, don't raise it," he said.

Kaellenius add that a level playing field is important and all market participants should have the same chance. "Don't go into protectionism. Go the other direction," he said.

Speaking of China, he said it is a "home away from home" for Mercedes. It is the carmaker's largest market and its largest production base across the globe is in Beijing.

Earlier this year, the 5 millionth China-made Mercedes-Benz vehicle rolled off the assembly line at its joint venture Beijing Benz Automotive Co.

When the joint venture was established in 2005, its planned production volume was just 25,000 units.

Mercedes is ramping up efforts in research and development in China, particularly in such features as infotainment and autonomous driving.

Kaellenius said the China R&D facility is an integral part of the global team and their job is not only "in China for China but also in China for the world".