On Friday, Beijing announced that it had lodged an appeal with the World Trade Organisation regarding the European Union’s decision to impose additional tariffs on electric vehicle imports from China.
In response to findings that Chinese electric vehicles were unfairly undercutting their European counterparts, the EU introduced provisional tariffs of up to 38 percent in July.
China’s commerce ministry spokesperson stated, “China appealed to the World Trade Organisation to challenge the EU’s temporary anti-subsidy measures on electric vehicles.”
The objective of the appeal, according to the ministry, is to protect the development rights and interests of the electric vehicle industry and promote global green transformation cooperation.
Claiming that the EU’s preliminary ruling violated WTO rules and hindered global climate change cooperation, China urged the EU to rectify its actions and maintain stable economic and trade ties with China.
The European Commission expressed confidence that its investigation and provisional measures align with WTO regulations in response to China’s appeal.
The WTO confirmed receipt of China’s appeal and indicated that further details would be shared once the request is circulated among WTO members.
Definitive duties, set to come into effect by November for a five-year period, are pending approval by the EU’s 27 member states.
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Trade disputes – China and the EU have clashed over various trade, technology, human rights, and national security matters in recent years.
The EU is navigating a delicate balance as it seeks to protect its auto industry and transition to sustainable growth while avoiding confrontation with China.
Both sides have initiated investigations into each other’s subsidies and products, with the US already imposing 100 percent tariffs on Chinese electric cars and Canada contemplating similar measures.
China’s success in the electric vehicle market can be attributed to its focused industrial strategy, significant state investments in local companies and R&D, giving Chinese firms a competitive advantage over European counterparts in terms of affordability and efficiency.
According to the Atlantic Council, Chinese EV exports surged by 70% in 2023, totaling $34.1 billion, with nearly 40% of these exports heading to the EU.
AFP.