The decision followed the EU’s determination that significant government subsidies given to Chinese automakers unfairly disadvantaged their European competitors.
On Friday, the Chinese government lodged a formal complaint with the World Trade Organization (WTO) against the European Union for applying provisional extra tariffs on Chinese electric vehicle (EV) imports.
The EU introduced provisional tariffs on Chinese-made EVs, ranging from 17.4% to 37.6%, in addition to an existing 10% duty on Chinese automotive imports. This action was taken in response to the EU’s findings that Chinese automakers benefit from substantial government subsidies, which unfairly disadvantage European competitors and escalate global tensions over protectionist policies in the EV sector. Both the U.S. and the EU have criticized China for its subsidies to the EV market.
According to the Chinese Ministry of Commerce, the complaint aims to defend the rights and interests related to the growth of the EV industry and the global cooperation on green transformation. China’s appeal to the WTO on Friday argued that the EU tariffs breach WTO regulations and impede the international efforts against climate change.
The EU recently declared its intention to apply a 37.6% levy on Chinese EVs, which are increasingly entering the market and posing a competitive threat to European automakers. The Ministry also stated that the EU’s initial ruling is both factually and legally unfounded, grossly violating WTO rules and damaging global climate change cooperation.
To protect the rights and interests of the EV industry and promote global green transformation, China has turned to the WTO dispute settlement mechanism concerning the EU’s provisional countervailing measures on EVs, the Ministry of Commerce announced.
China has called on the EU to promptly rectify its measures and work together to maintain the stability of economic and trade relations between China and the EU, as well as the electric vehicle industry and its supply chains. In early July, the European Commission imposed provisional additional tariffs of up to 37.6% on Chinese battery electric vehicle (BEV) manufacturers following an investigation that concluded subsidies supporting the Chinese BEV value chain pose a financial threat to EU producers.
