The World Trade Organization (WTO) received a formal protest from the Chinese government on Friday accusing the European Union of imposing temporary additional duties on Chinese imports of electric vehicles (EVs).
The EU increased the 10% levy on Chinese automobile imports to include provisional tariffs on EVs built in China, which range from 17.4% to 37.6%. This move was made in response to the European Union’s discovery that Chinese manufacturers profit from significant government subsidies, which unfairly disadvantage rivals in Europe and heighten tensions worldwide over protectionist measures pertaining to the electric vehicle industry. China’s EV market subsidies have drawn criticism from the US and the EU.
As per the Chinese Ministry of Commerce, the purpose of the complaint is to safeguard the rights and interests concerning the expansion of the electric vehicle sector and the worldwide collaboration on environmentally conscious change. China said in its Friday appeal to the WTO that the EU levies violate WTO rules and obstruct global efforts to combat climate change.
Recently, the EU announced that it will impose a 37.6% tax on Chinese electric vehicles (EVs), which are becoming more and more prevalent in the market and a competitive threat to European automakers. The Ministry further declared that the EU’s original decision is legally and factually baseless, flagrantly breaking WTO regulations, and undermining international cooperation on climate change.
China has resorted to the WTO dispute settlement process in relation to the EU’s interim countervailing measures on electric vehicles (EVs) in order to safeguard the rights and interests of the EV industry and advance the global green revolution, the Ministry of Commerce declared.
China has demanded that the EU immediately reverse its actions and cooperate in order to preserve the stability of trade and economic ties between China and the EU, as well as the supply chains and the electric vehicle industry. Following an assessment that determined subsidies supporting the Chinese battery electric vehicle (BEV) value chain constitute a financial threat to EU companies, the European Commission imposed provisional extra tariffs of up to 37.6% on Chinese BEV manufacturers in early July.
