China files WTO complaint against EU — RT Business News

The bloc’s preliminary decision on import duties “lacks factual and legal basis,” Beijing argued

China has filed a complaint with the World Trade Organization (WTO) over the European Union’s imposition of provisional additional tariffs on electric vehicles (EVs) manufactured in the Asian country.

Last month, the EU imposed tariffs ranging from 17.4% to 37.6% on imports of Chinese electric vehicles, on top of existing 10% tariffs, citing Beijing’s position. “Unfair subsidies” car manufacturers.

China’s Ministry of Commerce announced on Friday that it had appealed to the WTO’s dispute settlement mechanism. “safeguarding the development rights and interests of the electric vehicle industry and cooperation in global green transformation.”

The ministry argued that the EU’s preliminary decision lacked a factual and legal basis, seriously violated WTO rules and undermined global cooperation on climate change.

“We urge the EU to immediately correct its wrong practices and jointly maintain the stability of China-EU economic and trade cooperation as well as electric vehicle industrial and supply chains,” the Chinese ministry said.

The EU’s introduction of tariffs in early July follows an investigation launched last year by the European Commission into allegations that subsidies were allowing Chinese electric vehicles to be sold at prices well below those produced in the Union. Based on the results of the investigation, the commission concluded that battery electric vehicles (BEVs) “value chain” in China benefits from “unfair subsidies”, which causes a “threat of economic harm” to EU carmakers. A final decision on tariffs is expected by November.

China’s Commerce Ministry has warned that the EU could trigger a “trade war” As tensions continue to rise, Beijing has also accused the EU of unfair practices in its anti-subsidy investigation and responded by launching an anti-dumping probe into certain pork products from the EU.

The EU is the largest overseas market for Chinese electric vehicle manufacturers. The value of European imports of Chinese electric cars jumped to $11.5 billion in 2023, from just $1.6 billion in 2020, accounting for 37% of all EV imports into the bloc, according to a recent study.

The EU’s prohibitive measure follows the US increasing its tariffs on Chinese electric vehicles from 25% to 100% in May.