China initiates WTO legal action against the EU

Beijing has criticized the bloc's choice to implement significant countervailing duties on Chinese electric vehicles. Read Full Article at RT.com.

China initiates WTO legal action against the EU
China has initiated legal action against the European Union at the World Trade Organization in response to the EU's new measures on electric vehicle imports from the country.

The European Union has reached a decision to impose tariffs ranging from 8% to 35% on imports of Chinese electric vehicles for a five-year period. This ruling follows a year-long inquiry by Brussels, which concluded that China enjoys unfair subsidization. The new tariffs will be added to the EU’s existing 10% import duty on cars.

On Monday, the Chinese Ministry of Commerce expressed strong opposition to the ruling, stating, “China firmly opposes” the decision and announcing plans to file a lawsuit against the EU’s final anti-subsidy measures to protect the interests of its electric vehicle sector and promote global green transformation cooperation. The ministry further lamented, “It is regrettable to see the European side announcing the final rulings to impose high countervailing duties on Chinese EVs despite numerous objections by relevant parties, ranging from governments of EU member states to industries, and the public.”

According to the ministry’s spokesperson, the EU's ruling lacks both factual and legal foundation, violates WTO regulations, and is characterized as trade protectionism masquerading as countervailing duties.

The EU has defended the tariffs as necessary to shield its domestic car manufacturers from unfair competition, asserting that Chinese companies benefit from state subsidies. However, this decision has faced significant pushback from member states such as Germany and Hungary.

The EU represents the largest foreign market for Chinese electric vehicle manufacturers. Recent research indicates that the value of electric car imports from China surged to $11.5 billion in 2023, up from just $1.6 billion in 2020, making up 37% of all EV imports to the EU.

Beijing has cautioned that the EU's actions could lead to a "trade war" if tensions escalate further. The Chinese government has accused the EU of unfair practices during the anti-subsidy investigation and has responded by imposing provisional tariffs on EU-originating brandy, as well as launching an anti-dumping investigation on certain pork and dairy products from the bloc.

This decision by the EU comes shortly after the U.S. increased its tariffs on Chinese electric vehicles from 25% to 100% in May.

Camille Lefevre for TROIB News